Michael Saylor: Demand for Bitcoin ETFs Outweighs Supply
According to Michael Saylor, the co-founder and executive chairman of MicroStrategy, the demand for Bitcoin from recently listed spot Bitcoin exchange-traded funds (ETFs) is ten times greater than the supply available from miners. Saylor believes that this demand is driving the surge in the price of Bitcoin due to an imbalance in its supply.
Demand for Bitcoin Products is 10x the Supply
In a recent interview with CNBC, Saylor highlighted that there has been a decade of accumulated demand for Bitcoin ETFs, which is now being satisfied as mainstream investors gain access to BTC. He attributes the increased capital inflow to these ETFs to their accessibility. Saylor also emphasized the appeal of Bitcoin, citing its lack of correlation with traditional risk assets and its independence from external influences.
Saylor also discussed MicroStrategy’s plans to rebrand as a Bitcoin development company. The company aims to acquire more BTC and support the expansion of the Bitcoin network. He explained that this aligns with their successful Bitcoin-centric strategy and allows them more versatility compared to traditional investment trusts.
MicroStrategy has been increasing its crypto holdings and currently holds 190,000 Bitcoins. They have purchased an additional 31,775 coins since the end of Q3 2023, marking the largest quarterly addition to their holdings in three years.
BTC Surpasses $50K
Saylor’s interview coincided with a significant milestone for Bitcoin, as its price surpassed $50,000 for the first time in over two years. The token has experienced a 15% increase since the beginning of the year and is trading at double its price from a year ago.
James Butterfill, head of research at CoinShares, shares a similar perspective to Saylor, noting the increased organic demand for Bitcoin following the launch of spot Bitcoin ETFs. This has resulted in continued inflows into these funds.
At the time of writing, Bitcoin is trading around $50,000, with a 3.8% increase over the last 24 hours and a 17.3% increase over the past week.
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