Michael Saylor, the founder of MicroStrategy and one of the biggest proponents of mainstream Bitcoin adoption, said there could be a major demand shock for Bitcoin upon spot ETF approval in January 2024.
Also read: The US Securities and Exchange Commission has met with spot Bitcoin ETF seekers 24 times so far; What's ahead?
Demand shock and supply shock
Saylor warned against underestimating the power of the spot Bitcoin ETF in the context of the likelihood of approval from the US Securities and Exchange Commission (SEC). Speaking to Bloomberg on Tuesday, he said it would not be unreasonable to say that the Bitcoin ETF approval could be the biggest development on Wall Street in three decades. Saylor predicted that Bitcoin would experience an uptrend in 2024, explaining that spot ETF approval could have a similar impact on markets as the introduction of the S&P 500 index funds on the stock market.
With the approval of the spot ETF, the US Securities and Exchange Commission (SEC) could trigger a demand shock for BTC, he predicted, adding that the Bitcoin halving scheduled for the second quarter of 2024 could trigger a supply shock that would make the cryptocurrency more valuable and scarce. Bitcoin (BTC) price is currently around 13% higher than it was a month ago, although it remains to be seen how volatile it could become ahead of the SEC deadline on January 10, 2024. Some analysts believe there is a 98% chance of approval before the deadline, with companies like Blackrock holding regular meetings with SEC officials.
MicroStrategy BTC accumulation
According to the bullish sentiment, MicroStrategy, the current largest institutional holder of Bitcoin, could likely accumulate more of the cryptocurrency. Previously, CoinGape reported on the company's recent $5.3 million BTC purchase on November 2, 2023, when the BTC price was just above $34,000. The company began accumulating BTC in August 2020 and currently has a total holding of 158,400 Bitcoin.
Meanwhile, SEC officials have met with spot ETF applicants 24 times, which could be a sign that approval is likely before the Jan. 10 deadline.
Also read: CFTC Approval of Bitnomial Clearinghouse License Sparks Debate Over Vertical Integration
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