With Bitcoin breaking the $50,000 mark, it has caused a stir 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 the product is ten 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. The listing of a Bitcoin spot ETF will further push up the price of Bitcoin.
In response to his claim of a serious supply-demand imbalance in the current cryptocurrency market, he pointed out that the demand for a Bitcoin spot ETF is ten times the supply that global mining companies and miners can provide. This aligns with the bullish view of Andrew Kang, co-founder of Mechanism, who predicts that the flow of large amounts of funds, including from corporations and sovereign wealth funds, will be attracted through the adoption of a Bitcoin ETF in addition to Bitcoin’s astonishing net inflow every year.
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.
In addition, considering the company’s strategy of actively purchasing more Bitcoin and promoting the growth of the Bitcoin network, Michael Saylor expressed his belief in brand restructuring and emphasized a greater 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 their 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 CoinShares, a cryptocurrency asset management company, 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 was launched on January 11, with a total inflow amount reaching $2.8 billion and a total custody Bitcoin quantity of 192,000. BlackRock and Fidelity are leading their peers 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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