MicroStrategy Co-founder Hails Spot Bitcoin ETF Largest Wall Street Development in Three Decades

MicroStrategy co-founder Michael Saylor has weighed on the spot Bitcoin exchange-traded funds (ETFs) as the greatest achievement for traditional finance (TradFi) since unveiling the S$P 500 index fund. The Bitcoin bull, who chairs the largest public holder of Bitcoins, considers the ETF breaking the records set in the early 1990s.

Speaking during the Tuesday, December 19 interview with Bloomberg, Saylor considered it unreasonable for one to rule out that the Bitcoin ETF is the biggest development ever undertaken by Wall Street in the last three decades. 

Spot Bitcoin ETF Predicted to Match S&P Index in Meaningful Impact

Saylor confessed that the last development that delivered a consequential impact across the investment climate was the S&P index. Also, he indicated that the capability of investing in all 500 S&P constituents in a single trade realized a similar impact. 

Saylor stated that a spot Bitcoin ETF will likely open opportunities for mainstream retail investors. Also, multiple institutional investors would embrace the product, mainly those unable to access high bandwidth and compliant channels to realize Bitcoin exposure.  

Saylor profiled the Bitcoin ETF approval as a critical catalyst to drive demand for Bitcoin amid the looming supply shock in April. The latter involves the halving event, minimizing the Bitcoin units rewarded for every block. 

Saylor’s view echoed the prediction by Blockstream chief executive Adam Back, who indicated that approval of spot BTC ETF at the onset of 2024 paired with the block reward halving would propel the token to $100,000. 

Saylor doubted a coincidence when Bitcoin experienced a 2 to 10X surge in demand alongside halving, leaving a scarce supply of the asset that more people desire to hold long. The former MicroStrategy chief considers the duo factor reason for Bitcoin to portray a significant bull run in 2024.

Saylor reiterated that MicroStrategy would not change the Bitcoin investment strategy and that the holding approach would continue for the foreseeable future. He added that the business intelligence and crypto holding firm’s goal is to explore ways to accumulate more Bitcoin per share unit. 

Saylor disclosed that MicroStrategy would consider debt, cash flows, and equity options to acquire more Bitcoins. MicroStrategy has offered traditional investors a channel of exposure to Bitcoin’s price since it unveiled the acquisition of the token in 2020. 

Saylor observed that MicroStrategy offers the investors leverage, though not charging them a fee. As such, it will sustain the provision of high-performance vehicles for individuals who desire long Bitcoin investment. 

Saylor disclosed that MicroStrategy has ownership rights over 174530 Bitcoins, whose purchase price averages $30,352 per Buy Bitcoin Worldwide. Bitcoin carries an estimated value of $7.6 billion at press time, with MicroStrategy’s Bitcoin investment increasing by $2.1 billion.

Saylor Ditches Decade-Old Bitcoin Skepticism

Saylor reflected on the now infamous tweet skeptic of Bitcoin’s future and predicted its ultimate downfall. The MicroStrategy chair has since traded tags in becoming a leading Bitcoin advocate. 

In a series of pronouncements, Saylor has portrayed the difference in Bitcoin from the online gambling he once compared to the token. The chair’s pronouncement has turned erroneous since online gambling is yet to die, with its total market size estimated at $63 billion as per the Business Wire data. 

Saylor realized the inaccurate prediction as he revised the initial position in 2020. He admitted committing thousands of hours to study Bitcoin before convincing MicroStrategy’s board to include it in the business intelligence firm’s balance sheet. 

Saylor Intelligence Hailed for Leading Bitcoin Inclusion in MicroStrategy’s Balance Sheet

A revisit of Bitcoin market activity illustrates that its price surged nearly 18-fold before Saylor’s firm acquired the initial batch. The MicroStrategy inaugural batch on August 11, 2020, cost the firm $11,650 relative to the $677 exchange value in December 2013. 

The shift in perspective portrayed by Saylor prompted praise from leading Bitcoin analyst Dylan LeClair. The analyst indicated that the intelligence measure is portrayed in the capability of changing. As such, Saylor portrayed strategic intelligence in having a second look at Bitcoin.