Bitcoin (BTC) holds the potential to surge to $1 million in just a matter of days to weeks following the green light for a spot Bitcoin exchange-traded fund (ETF). Samson Mow, the CEO of Jan3, asserts that the confluence of a restricted Bitcoin supply on exchanges and a substantial influx of institutional investments will propel the cryptocurrency’s price to unprecedented heights within an unusually brief timeframe.
Mow explained in a recent interview, “You’re encountering a very constrained supply of Bitcoin on exchanges, available for purchase, coupled with a deluge of capital. This dynamic is what can propel the price to soar rapidly in a short span.”
Mow emphasized the anticipated influx of institutional capital upon the approval of a spot ETF, predicting a substantial flow of funds eager to acquire the limited pool of available Bitcoin on exchanges.
The heightened demand, juxtaposed with the scarcity of supply, may lead to a swift and significant surge in prices. Drawing parallels to forecasts made by entrepreneur Balaji Srinivasan, Mow suggests that the impact of a spot Bitcoin ETF approval on prices will unfold at a much more accelerated pace than the consequences of central bank money printing.
Unlike the gradual dissemination of money printing throughout the economy over the years, the endorsement of a spot ETF has the potential to trigger a sudden and explosive upswing in Bitcoin’s value.
Mow foresees that the ascent to $1 million will unfold at an unparalleled pace when compared to past Bitcoin bull markets. For instance, the rally in 2017 required nine months to achieve a twentyfold increase in value. However, with the injection of billions of dollars facilitated by ETF approvals, Mow anticipates a notably shorter timeframe for reaching the $1 million milestone.
Major ETF Issuers Met with SEC
As reported, over the past few days, four prominent Bitcoin exchange-traded fund (ETF) issuers have held meetings with the SEC. Bloomberg ETF analyst James Seyffart notes that these issuers have been actively engaging in discussions regarding their Bitcoin-related filings with the SEC, fostering increased optimism for the imminent approval of spot Bitcoin ETFs.
Notably, BlackRock has been especially active, holding its third meeting with federal regulators on December 12 within as many weeks. Additionally, Grayscale, Franklin, and Fidelity also participated in meetings with the SEC last week, underscoring the growing interest and concerted efforts surrounding Bitcoin ETF applications.
BlackRock has recently modified its spot Bitcoin ETF application, with the goal of encouraging participation from major banks. The revised application introduces new shares in the fund that can be acquired with cash, broadening the available options beyond exclusively using cryptocurrencies.
The SEC is anticipated to render a decision on BlackRock’s application by January 15, with the ultimate deadline set for March 15. James Seyffart noted that both the Division of Trading and Markets and the Division of Corporate Finance were present during these meetings, underscoring their pivotal role in approving or rejecting the 19b-4’s and S-1’s.
