Michael Saylor, Chairman of MicroStrategy Inc., said this at the Bitcoin Atlantis Conference held on the Portuguese island of Madeira. We discussed Bitcoin and other topics with podcast host Natalie Brunel. One topic of discussion was the recently approved Spot Bitcoin Exchange Traded Fund ETF and its ability to compete with other top asset classes and ETFs.
“We probably thought Bitcoin was a competitor to gold, but in reality, Bitcoin has moved up the leaderboard and is now starting to trail the S&P 500 ETF,” Saylor said. .
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Bitcoin and gold are viewed similarly by some investors as they have limited supply and are seen as a hedge against inflation. But while gold has been around for thousands of years, Bitcoin is only 15 years old. Bitcoin is rapidly rising through the ranks, and Saylor no longer sees gold as Bitcoin’s main competitor from an investment perspective.
In fact, Thaler believes Bitcoin has the potential to compete with the world’s largest ETF, the S&P 500 Index ETF. SPDR S&P 500 ETF Trust (NYSE:SPY) and iShares Core S&P500ETF (NYSE:IVV).
In terms of market capitalization, the S&P 500 far outpaces Bitcoin.has a market capitalization of more than 40 trillion dollars, much more than Bitcoin’s $1.3 trillion. But Saylor said Bitcoin’s recent performance could indicate it’s ready to compete with the world’s biggest funds.
The Spot Bitcoin ETF has been on the market for less than two months, but its total assets have already exceeded $50 billion. according to says Eric Balchunas, senior ETF analyst at Bloomberg. These ETFs also saw record inflows in their first 30 days.
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“These ETFs have brought awareness, opportunity and functionality across the financial world to 99% of mainstream investors. You can’t underestimate how significant that is to the entire network,” Saylor said. said.
Saylor and Microstrategy are the largest institutional holders of Bitcoin, amassing a stash of 193,000 Bitcoin over the past few years. His overall investment has increased by over 100% and is now worth over $13.5 billion.
Although the investment was a huge success, Thaler doesn’t expect the company to be sold anytime soon. When asked about a potential exit strategy, Saylor said, “Bitcoin is the exit strategy.”
Not only does Saylor see no exit in the near future, but he has also taken on debt to buy more Bitcoin. MicroStrategy recently sold $700 million in convertible debt to buy more Bitcoin.
It will be interesting to see how that plays out as Bitcoin and spot ETFs continue to perform well and we expect more investment. Will the Bitcoin ETF catch up to the S&P 500 ETF? Only time will tell.
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