Bitcoin (BTC) could experience a rapid surge, potentially reaching $1 million in just days to weeks after the green light for a spot Bitcoin exchange-traded fund (ETF). Samson Mow, CEO of Jan3, predicts that the confluence of reduced Bitcoin availability on exchanges and a substantial influx of institutional investments will propel the cryptocurrency’s price to unprecedented heights in an exceptionally brief timeframe. “With a torrent of money converging on a scarce supply of Bitcoin accessible on exchanges, the stage is set for a significant price escalation,” he remarked in a recent interview.
“This is the reason for the potential sudden and substantial surge,” emphasized Mow, underscoring the anticipated influx of institutional capital poised to follow the approval of a spot ETF. He highlighted the imminent deluge of funds eager to acquire the constrained pool of available Bitcoin on exchanges.
The surge in demand, combined with the scarcity of supply, creates conditions conducive to a swift and significant uptick in price. Drawing a comparison to forecasts made by entrepreneur Balaji Srinivasan, Mow asserts that the approval of a spot Bitcoin ETF is likely to have a faster and more pronounced impact on prices than the consequences of central bank money printing.
Unlike the gradual permeation of money printing effects over the years, the approval of a spot ETF has the potential to trigger a sudden and explosive surge in Bitcoin’s value, according to Mow.
He envisions that the ascent to $1 million will unfold at an unprecedented pace compared to previous Bitcoin bull runs. To illustrate, the 2017 rally required nine months to realize a 20-fold increase in value. However, with the infusion of billions of dollars facilitated by ETF approvals, Mow anticipates a substantially shorter timeframe for reaching the $1 million milestone.
Major ETF Issuers Met with SEC
Recent reports indicate that four major Bitcoin exchange-traded fund (ETF) issuers have been in discussions with the Securities and Exchange Commission (SEC) in the past few days. According to insights from Bloomberg ETF analyst James Seyffart, these issuers have been actively engaging with the SEC, fostering increased optimism for the eventual approval of spot Bitcoin ETFs.
Notably, BlackRock has been a standout participant, having met with federal regulators for the third consecutive week on December 12. This ongoing engagement underscores the company’s persistent efforts to navigate the regulatory landscape.
Additionally, Grayscale, Franklin, and Fidelity held meetings with the SEC last week. These interactions signify a growing interest and concerted efforts within the industry regarding Bitcoin ETF applications, suggesting a dynamic and evolving landscape in the realm of cryptocurrency investment.
BlackRock has recently modified its spot Bitcoin ETF application, making adjustments to encourage participation from major banks. The revised application incorporates new shares in the fund, enabling their purchase with cash, thereby expanding the available options beyond cryptocurrency-only transactions.
The Securities and Exchange Commission (SEC) is anticipated to reach a decision on BlackRock’s application by January 15, with the final deadline set for March 15. During the meetings, it was noted by Seyffart that the Division of Trading and Markets and the Division of Corporate Finance were both in attendance. These divisions play a crucial role in the approval or denial of the 19b-4’s and S-1’s, emphasizing their significance in the regulatory process.
