The influence of Bitcoin ETFs on the growth of the market: Michael Saylor's analysis

“Wall Street loves bitcoin. They are buying 12.5 times more bitcoins per day than the network can produce,” astutely notes crypto trader Pomp on Twitter. According to him, daily acquisitions far exceed the network’s production, reaching up to 12.5 times more. For Michael Saylor of MicroStrategy, Bitcoin spot ETFs have played a crucial role in popularizing cryptocurrency, thus propelling its price to new heights.

Bitcoin ETFs stimulate demand and propel prices

JUST IN – Michael Saylor on #Bitcoin hitting $50k: "People are beginning to realize that there is 10x as much demand for Bitcoin coming in through these ETFs" 🐂

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— Bitcoin Magazine (@BitcoinMagazine) February 12, 2024

Michael Saylor, the leading figure of MicroStrategy (and of Bitcoin), states that the recent introduction of Bitcoin ETFs leads to a rise in the cryptocurrency’s prices, due to a massive imbalance between supply and demand in the cryptocurrency world. According to him, nearly a decade of pent-up demand for a BTC product accessible to retail investors is being released.

“There’s ten years of pent-up demand that people have been waiting for these ETFs, and finally, traditional investors can access Bitcoin, and I think that’s what’s driving the influx of capital into this asset class,” he highlighted in an interview with CoinDesk.

The current demand for Bitcoin stems from its uncorrelated nature with traditional risk assets and its lack of exposure to specific events such as quarterly earnings, conflicts, or supply chain disruptions, explained Saylor, former CEO of MicroStrategy.

Furthermore, MicroStrategy, a pioneer in accumulating bitcoins, is even considering rebranding itself as a ‘Bitcoin development company’, in line with its strategy to expand its BTC ownership and foster blockchain growth. Notably, MicroStrategy is originally a software publisher facilitating business intelligence.

According to Saylor, this model offers greater flexibility compared to an investment trust, allowing the company to develop software, generate cash flows, accumulate BTC for its shareholders, and contribute to the growth of the namesake network.

“It’s natural for us to position ourselves as a Bitcoin development company,” he concluded, comparing MicroStrategy to a development company focused on sectors such as real estate or oil.

MicroStrategy: Unstoppable growth despite Bitcoin uncertainty

MicroStrategy Incorporated (Nasdaq: MSTR), has just unveiled staggering results for the fourth quarter of 2023 on its website. With a focus on the massive increase in its bitcoin holdings, 190,000 BTC to date, and the deployment of MicroStrategy AI, the company has recorded a double-digit growth in its revenue.

Aware of the benefits that MicroStrategy can derive from its bitcoins, CEO Phong Le emphasizes the commitment to technological innovation.