Bitcoin & MicroStrategy
#NFA #DYOR
5 reasons why a spot Bitcoin ETF approval could send BTC price above $100K
The price of Bitcoin is determined by the balance between immediate demand and the supply of coins at a specific price level.
By offering products where the asset manager retains the management fee, the incentives for providing the product increase significantly.
*This means that sales teams at BlackRock, Fidelity, Ark Invest, Bitwise, VanEck, and other issuers will be fully engaged in attracting both internal and external clients. Other funds managed by these multi-trillion-dollar asset managers may also be encouraged to invest in Bitcoin's newly launched ETF.
Historically, the ETF industry has witnessed a concentration of assets among the top two issuers.
For example, SPDR Gold Trust (GLD) and iShares Gold Trust (IAU) represent over 85% of the industry's assets under management.
Additionally, the market leader State Street's GLD has an expense ratio of 0.4%, which is considerably higher than most competitors.
This data underscores the importance of gaining an early advantage in terms of ETF holdings.
- Bitcoin is validated,
- Boomers enter the market,
- Issuers compete for dominance
- Bitcoin receives regulatory clearance
- The spot ETF eases concerns for investment advisors
when these five favorable trends gain full momentum, it’s not likely that Bitcoin will trade below $100,000 again—it’s only a matter of time.
MicroStrategy’s stock surges 350% in 2023 on back of Bitcoin ETF hype
The company is financing its Bitcoin purchases with long-term, low-interest debt and share issuance.
MicroStrategy and its subsidiaries hold 189,150 BTC, representing a combined purchase price of approximately $5.9 billion and an average purchase price of $31,168 per BTC, according to a report from Cointelegraph.
MicroStrategy exposure's to the cryptocurrency is leading some analysts to label its stock as "essentially a leveraged Bitcoin ETF."
As of Sept. 30, MicroStrategy's total liabilities were at $2.534 billion, a 7.7% decline year-over-year, with long-term liabilities adding up to $2.180 billion.
This reasoning of MicroStrategy's bitcoin purchase was written in the book "The Bitcoin Standard" >> "The senior convertible notes aren't due until December 2025. From Saylor's perspective, it's unwise to save in a fiat currency that is perpetually debased when he can instead put the company's treasury in a liquid asset that doesn't suffer from dramatic supply inflation," reads the analysis.
Senior convertible notes are a type of debt instrument used by companies to raise capital.
MicroStrategy provides business intelligence, mobile software, and cloud-based services. Its main product is a platform for data analytics, used by businesses for data visualization.
The U.S. Securities and Exchange Commission is expected to decide in early January on allowing Bitcoin spot trading through ETFs, with major firms like Fidelity and BlackRock in the running.
Approval could boost Bitcoin’s prices and market liquidity by opening the cryptocurrency to a broader audience of investors.
READ: INCOMING INFLUX
https://cointelegraph.com/news/microstrategy-stock-surges-350-percent-2023-bitcoin-etf
When wolves of Wall Street come to the playground. #lol
Spot Bitcoin ETF could result in ‘millions of unbacked BTC,’ analyst says
