Markets should not undervalue the potential of upcoming spot Bitcoin ETFs, according to MicroStrategy founder Michael Saylor.
The $BTC Spot ETF may be the biggest development on Wall Street in the last 30 years. My discussion of #Bitcoin in 2024, Spot ETFs vs. $MSTR, and the emergence of bitcoin as a treasury reserve asset with @KaileyLeinz on Bloomberg @Crypto. pic.twitter.com/QtPdBOhMDr
— Michael Saylor⚡️ (@saylor) December 19, 2023
“It is not unfounded to suggest that [the instrument’s launch] could be the biggest event on Wall Street in 30 years,” said Saylor.
In his view, the most comparable event by importance was the launch ETF on the S&P 500, which provided easy access to one of the most popular indices.
The expert also stressed that private and institutional investors still lack access to broad channels for investing in Bitcoin.
The new instrument, as Saylor argues, will trigger a “demand shock” for digital gold, followed soon by a “supply shock” from halving. This will lead to a substantial rise in the asset’s price, he added.
In a recent CNBC interview, Saylor forecast Bitcoin would fall to zero or reach $1 million.
NEW: Michael Saylor on CNBC — If #Bitcoin is not going to zero then it’s going to $1 million. If it’s a legitimate institutional asset then everybody is under-allocated to it.
Yes they are…
pic.twitter.com/eHSYeCiUdX— Bitcoin Archive (@BTC_Archive) December 18, 2023
His bullish forecast is based on the belief that the first cryptocurrency offers unique advantages as a digital asset, including its decentralized nature, limited supply and growing global reach.
To reach $1 million, Bitcoin would need institutional legitimacy, he said.
Saylor’s forecast also entails substantial risks. The “zero or million” dichotomy underscores the market’s volatility and uncertainty.
According to the MicroStrategy founder, if Bitcoin is indeed on a path to becoming a “fundamental asset in institutional portfolios”, then the current level of investment is insufficient.
The current Bitcoin rally, Saylor explained, is driven by positive developments surrounding the spot ETF, where the SEC provided clear requirements to issuers of the product. The rise of the asset is also aided by global inflation and looser policies towards cryptocurrencies in various jurisdictions.
At the time of writing, Bitcoin trades at $42 900, up around 15% for the month, according to CoinGecko. The asset’s market capitalisation stands at about $839 billion.
Earlier, Saylor named catalysts for a tenfold rise in Bitcoin. In addition to the halving and the ETF, he highlighted the positive impact of regulatory and enforcement actions by authorities, including the trial of former FTX CEO Sam Bankman-Fried and upcoming regulatory provisions for the crypto market in the United States.
In October, MicroStrategy raised the size of its Bitcoin reserves to 158,400 BTC (~$6.8 billion at the time of writing) after purchasing an additional 155 BTC for $5.3 million.