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MicroStrategy Founder: Bitcoin Spot ETF as Important as S&P 500, Biggest Wall Street Development in 30 Years

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MicroStrategy Founder: Bitcoin Spot ETF as Important as S&P 500, Biggest Wall Street Development in 30 Years

MicroStrategy founder, Michael Saylor, discusses Bitcoin spot ETF, the impact of halving block rewards on the supply and demand of BTC in an interview with Bloomberg, suggesting a potential major bull market for Bitcoin.

Bitcoin Spot ETF Marks the Biggest Wall Street Development in 30 Years

The host asked, how will the launch of a Bitcoin spot ETF ultimately impact the price of Bitcoin?

Michael Saylor responded:

Do not underestimate this event, it could be the biggest development on Wall Street in 30 years. The last significant event was the launch of the S&P 500, which allowed investors to invest in 500 companies with one click. Currently, most of the funds in the Bitcoin market come from long-term holders and retail investors. Until the ETF, mainstream institutions did not have a suitable channel to invest in Bitcoin. Therefore, I believe the approval of the spot ETF in January will be a significant event.

Michael Saylor did not give a target price.

Bitcoin Halving Further Reduces Selling Pressure

In addition to the Bitcoin spot ETF stimulating demand, Michael Saylor also pointed out that the halving will reduce supply:

There will be a supply shock in April, as approximately 900 BTC are sold daily by natural sellers and miners, which will decrease to 450 BTC daily after the halving. With supply becoming scarce and the Bitcoin spot ETF expected to increase demand by 2 to 10 times, coupled with the public's desire for an ideal asset to hold long-term, I believe 2024 will be a major bull market for BTC.

MicroStrategy More Intuitive Than ETF

With the existence of a Bitcoin spot ETF, why buy MicroStrategy?

Michael Saylor stated that the ETF is non-leveraged and incurs fees, while MicroStrategy, in addition to buying BTC with idle cash, can also operate through a comprehensive profit and loss statement, borrowing and purchasing BTC at 0% interest over the years. He noted:

You can think of the ETF as a shipping company, very efficient, long hauls, carrying a large amount of capital; MicroStrategy, on the other hand, is more like an airline, with less cargo capacity, but faster and higher performance. We provide leverage to users without charging fees, offering high-performance tools for Bitcoin holders.

He emphasized that MicroStrategy continues to acquire BTC through various means and strives to secure more Bitcoin in the holdings of shareholders.

Michael Saylor concluded by mentioning the updated crypto accounting standards, which he believes are a big positive for companies holding coins. However, he revealed that MicroStrategy has not yet planned how to leverage the new accounting standards and will leave this decision to the professionals within the company for evaluation.

FASB approves fair value accounting standards to be implemented by the end of the year, benefiting companies holding cryptocurrencies like MicroStrategy