Bitcoin advocate Michael Saylor, co-founder of MicroStrategy, believes that the approval of a spot Bitcoin exchange-traded fund (ETF) could mark the most significant development on Wall Street since the creation of the S&P 500 index fund in the early 1990s. In an interview with Bloomberg, Saylor expressed that the impact of a spot Bitcoin ETF approval would open the door for mainstream retail and institutional investors, providing them with a “high bandwidth compliant channel” to invest in Bitcoin. He compared it to the historical significance of the S&P 500 index fund, enabling investment in all 500 S&P companies via one trade.
Saylor anticipates that a spot Bitcoin ETF approval would act as a catalyst, driving demand and creating a supply shock following the Bitcoin halving event in April. He predicts a substantial increase in demand combined with a supply reduction in the context of Bitcoin’s scarcity, leading to a significant bull run in 2024. MicroStrategy, under Saylor’s guidance, will continue its Bitcoin investment strategy, aiming to find ways to acquire more Bitcoin per share for shareholders.
MicroStrategy’s Ongoing Bitcoin Commitment:
MicroStrategy, known for providing traditional investors exposure to Bitcoin, currently holds 174,530 BTC with an average purchase price of $30,252. This Bitcoin holding is valued at $7.3 billion, and as of the latest data, MicroStrategy has gained $2.1 billion on its Bitcoin investment. Saylor highlighted that MicroStrategy offers a high-performance vehicle for long-term Bitcoin investors, providing leverage without charging fees.
From Skeptic to Advocate:
Reflecting on his journey, Saylor, once a Bitcoin skeptic, shared a tweet from exactly 10 years ago predicting the downfall of Bitcoin. He acknowledged the evolution of his stance, emphasizing the importance of intelligence in the ability to change. Saylor’s transformation from a skeptic to a Bitcoin advocate occurred around 2020 when he delved into extensive research on Bitcoin, leading MicroStrategy to add Bitcoin to its balance sheet.