In a recent Bloomberg interview, Michael Saylor, CEO of MicroStrategy, has expressed strong optimism about the impact of Bitcoin spot exchange-traded funds (ETFs) on the cryptocurrency market.
Saylor, known for his bullish stance on Bitcoin, believes that the approval of these ETFs could be a significant catalyst for Bitcoin’s growth, arguing that it could be one of the biggest developments on Wall Street in three decades.
The significance of Bitcoin spot ETFs
Saylor highlights the importance of Bitcoin spot ETFs, drawing a parallel with the creation of the S&P index and its transformative impact on equity investment.
He points out that the current Bitcoin market is primarily driven by traditional crypto investors and “hodlers.” At the same time, mainstream investors and institutions have lacked a high bandwidth, compliant channel to invest in Bitcoin.
The approval of spot ETFs, anticipated in January, could open up the market to a broader investor base, potentially leading to a demand shock in the market.
Impact on market dynamics
The anticipated approval of spot Bitcoin ETFs is expected to coincide with a supply shock in April. The daily availability of Bitcoin from natural sellers, like miners, will halve from 900 to 450 Bitcoins.
Saylor predicts this combination of increased demand and decreased supply could lead to a major bull run in 2024.
Unlike ETFs, which are unleveraged and charge fees, MicroStrategy can generate additional Bitcoin through its operations and take advantage of intelligent leverage, like borrowing at 0% interest.
MicroStrategy intends to continue acquiring Bitcoin, adapting its acquisition strategies to market conditions and opportunities.