ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
    • Crypto ETF Hub
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Crypto Channel
  2. Assessing Bitcoin Miners Ahead of 2024 Halving
Crypto Channel
Share

Assessing Bitcoin Miners Ahead of 2024 Halving

Tom LydonOct 13, 2023
2023-10-13

Bitcoin is heading toward another halving in April 2024, an event that will bring with it significance for miners of the largest cryptocurrency. That means exchange traded funds, such as the Invesco Alerian Galaxy Crypto Economy ETF (SATO ), are pertinent in the halving conversation as well. For its part, SATO is heavily allocated to bitcoin miners.

That makes the fund one of the most relevant assets regarding halving. In simple terms, bitcoin halving makes it more difficult to mine the digital currency, thus reducing rewards to miners.

In a recent note to clients, JPMorgan forecast that the Bitcoin Network Hash Rate will decline by 20% following the April 2024 halving. Investors that are new to cryptocurrency and mining equities are apt to interpret that as gloomy news. But halving also serves the aim of prompting miners, including SATO member firms, to take older software offline, thus making those companies more efficient.

‘Crucible Moment’ for Bitcoin Miners

JPMorgan told clients the bitcoin mining industry is at a “crucible moment.” This is because management teams at these companies consider the positive implications of a spot bitcoin ETF potentially coming to market while balancing the upcoming lower Bitcoin Network Hash Rate. Among the names the bank is bullish on is SATO component Cleanspark Inc. (CLSK), which it rates “overweight.”

“Not all miners created equal. Miners vary by scale, operating efficiency, access to capital and growth prospects. We believe CLSK, our top pick, offers the best balance of scale, growth potential, power costs, and relative value,” according to JPMorgan.

Shares of Cleanspark account for nearly 4% of SATO’s lineup. The bank also upgraded SATO holding Iris Energy Ltd. (IREN) to “overweight” from “neutral.”

Cleanspark and Iris Energy could be upside drivers for SATO because crypto mining industry observers are increasingly scrutinizing margins and power costs in the group. On those metrics, those two SATO holdings score well. That implies there’s an element of value with those names. That is a desirable trait at a time when value is hard to come by in this space.

“In this context, the report explains that the market cap of the 14 largest U.S. listed Bitcoin mining companies is 36% larger than what JPMorgan’s research team expects the whole industry can generate in revenues for the next four-year cycle, which is $20 billion,” reported Vinicius Barbosa for Finbold.

For more news, information, and analysis, visit the Crypto Channel.


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X