Why Approval of Spot Bitcoinย (BTC) ETFs is Needed, According to Michael Saylor
In the world of digitalย currency, spot Bitcoinย (BTC) ETFs are expected to have a wholeย lotย of impact. Michael Saylor, cofounder of MicroStrategy and a staunch Bitcoinย (BTC) supporter, recently highlighted the importance of approving spot ETFs. He pointed out the gap between the price return of ProShares Bitcoinย (BTC) Strategy ETF (BITO) and the price of Bitcoinย (BTC) itself. Althoughย while Bitcoinย (BTC) has seen a 57% increase year to date, BITO only rose by 28%. Saylor claimedย that this gap demonstrates the necessity of approving spot Bitcoinย (BTC) ETFs.
Comparing Bitcoinย (BTC) ETF Price Return to Total Return
Nonetheless, Bloomberg ETF analyst James Seyffart madeย itย clearย that Saylor was comparing the price return of Bitcoin to the price return of BITO, not taking into account the total return which includes dividend value. Andย once considering total return, the ProShares ETF lags behind by around 6.4% year to date. Approving spot Bitcoinย (BTC) ETFs could help institutionalize the cryptocurrency market and potentially minimize the gap between returns in futures ETFs and spot ETFs. This could likewise lead to increased demand for Bitcoinย (BTC) as institutions like Blackrock and Fidelity accumulate large volumes of Bitcoin to operate the ETFs.
Hot Take: The approval of spot Bitcoinย (BTC) ETFs would bring greater institutionalization to the cryptocurrency market and potentially reduce the gap between futures ETFs and spot ETFs. This move could likewise generate higher demand for Bitcoinย (BTC) as more institutions enter the market. It remains to be seen how MicroStrategy will adjust its buying strategy if spot ETFs become a reality.
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