Why Approval of Spot Bitcoin ETFs is Needed, According to Michael Saylor
In the world of cryptocurrency, spot Bitcoin ETFs are expected to have a significant impact. Michael Saylor, cofounder of MicroStrategy and a staunch Bitcoin supporter, recently highlighted the importance of approving spot ETFs. He pointed out the gap between the price return of ProShares Bitcoin Strategy ETF (BITO) and the price of Bitcoin itself. While Bitcoin has seen a 57% increase year to date, BITO only rose by 28%. Saylor argued that this gap demonstrates the necessity of approving spot Bitcoin ETFs.
Comparing Bitcoin ETF Price Return to Total Return
However, Bloomberg ETF analyst James Seyffart clarified that Saylor was comparing the price return of BTC to the price return of BITO, not taking into account the total return which includes dividend value. When considering total return, the ProShares ETF lags behind by around 6.4% year to date. Approving spot Bitcoin ETFs could help institutionalize the crypto market and potentially minimize the gap between returns in futures ETFs and spot ETFs. This could also lead to increased demand for Bitcoin as institutions like Blackrock and Fidelity accumulate large volumes of BTC to operate the ETFs.
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