Michael Saylor: Demand for Bitcoin Spot ETF is 10 Times the Supply, Continual Bitcoin Acquisition
With the price of Bitcoin breaking the $50,000 mark, it has caused a sensation in the cryptocurrency community. Michael Saylor, the founder of MicroStrategy, emphasized the importance of a Bitcoin spot ETF in the continuous rise of its price, claiming that the demand for this product is 10 times the supply. At the same time, the company will reposition itself as a Bitcoin development company and will purchase more Bitcoin.
Michael Saylor stated in a recent CNBC interview that the demand for Bitcoin investment products from the public, retail investors, and institutions has been suppressed for the past decade. Now, with the launch of a Bitcoin spot ETF, it will further push up the price of Bitcoin. In response to his claim that there is a serious supply-demand imbalance in the current cryptocurrency market, he pointed out that the demand for a Bitcoin spot ETF is 10 times the supply that global mining companies and miners can provide. This aligns with the bullish view of Andrew Kang, the co-founder of Mechanism, who predicts that in addition to the astonishing net inflow of Bitcoin every year, the introduction of a Bitcoin ETF will attract large amounts of capital inflow, including from corporations and sovereign wealth funds.
Furthermore, Michael Saylor also added the reasons why Bitcoin is now receiving so much attention. Bitcoin is popular because it is unrelated to traditional risk assets, does not involve any specific country or company, and is not affected by wars, employees, or supply chains. Previously, he praised the launch of the Bitcoin spot ETF in an interview, comparing it to the S&P 500 and calling it the biggest development on Wall Street in 30 years.
In addition, considering that the company’s strategy is to actively purchase more Bitcoin and promote the growth of the Bitcoin network, Michael Saylor expressed his belief in brand reshaping and emphasized a focus on Bitcoin network development. He stated that MicroStrategy’s business model has greater flexibility than trust funds, allowing them to generate cash flow through software development and utilize the capital market to accumulate Bitcoin for its shareholders and promote the development of the Bitcoin network. Previously, the company provided products and services such as business intelligence, data analytics, mobile software development, and cloud computing.
According to a weekly report by cryptocurrency asset management company CoinShares, the spot Bitcoin ETF product attracted over $1.1 billion in inflows last week, becoming the primary choice in the cryptocurrency investment field. This is the highest weekly inflow amount since the product launched on January 11, with a total inflow of $2.8 billion and a total custody Bitcoin quantity of 192,000. Among them, BlackRock and Fidelity led the way with inflows of $693 million and $522 million, respectively.
Currently, the global assets under management (AuM) have reached a high point since the beginning of 2022, reaching $59 billion.
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