Marathon Digital (NASDAQ:MARA) stock is one of many crypto-related equities trending higher today after the Securities and Exchange Commission (SEC) approved spot Bitcoin (BTC-USD) exchange-traded funds (ETFs) late yesterday. Several Bitcoin ETFs are slated to start trading today. Marathon owns a large amount of Bitcoin, and many have theorized that the ETFs will push the token’s prices much higher.
Meanwhile, more than 20% of the shares of MARA stock have been borrowed by short sellers. As a result, the shares could easily undergo a short squeeze.
More About the Bitcoin ETFs
SEC Chair Gary Gensler announced that the agency had decided to approve Bitcoin ETFs due to a court decision. Specifically, a U.S. appeals court found that the agency’s decision to deny a Bitcoin ETF was incorrect.
However, Gensler strongly suggested that the SEC would not approve ETFs based on other cryptos. He stated that:
“Importantly, today’s Commission action is cabined to (exchange-traded products) holding one non-security commodity, bitcoin. It should in no way signal the Commission’s willingness to approve listing standards for crypto asset securities.”
Ten Bitcoin ETFs were greenlit by the SEC. Since the ETFs will provide investors with a relatively easy way to obtain exposure to Bitcoin, many believe that the demand for the token will soar. But on the other hand, the crypto’s value has already more than doubled since March 2023. Consequently, some have contended that most of its gains from the ETF approvals have already occurred.
Additional Information About Marathon and MARA Stock
As of the end of last year, Marathon owned “over 15,000” Bitcoins. The company added that it is “the largest publicly traded bitcoin miner in North America.”
Nearly 21% of the total float of MARA stock is being sold short, and 58.4% of off-exchange trading volume is attributed to short sellers.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
