- December 17, 2023
- Posted by: [email protected]
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In a recent announcement, Samson Mow, the CEO of Jan3, has sparked speculation about Bitcoin’s rapid ascent to $1 million within a matter of days to weeks following the potential approval of a spot Bitcoin exchange-traded fund (ETF). Mow highlights the key drivers behind this remarkable surge, emphasizing the scarcity of Bitcoin on exchanges and an imminent influx of institutional investment.
Mow underscores the convergence of a limited Bitcoin supply and a substantial wave of institutional capital that could propel prices to unprecedented levels in an exceptionally short time frame. He envisions a scenario where the approval of a spot ETF triggers a flood of funds eager to acquire the limited pool of available Bitcoin on exchanges, paving the way for a swift and substantial increase in prices.
Drawing comparisons with forecasts made by entrepreneur Balaji Srinivasan, Mow proposes that the impact of a spot Bitcoin ETF approval on prices will unfold much more swiftly than the gradual effects of central bank money printing. Unlike the gradual dissemination of printed money into the economy over the years, Mow anticipates a sudden and explosive surge in Bitcoin’s value, forecasting an accelerated journey to the coveted $1 million mark.
In contrasting this anticipated rapid rally with historical Bitcoin bull runs, Mow points out that the 2017 rally, characterized by a 20-fold increase in value, took nine months to materialize. However, armed with the potential influx of billions of dollars through ETF approvals, Mow envisions a significantly shorter timeframe for Bitcoin to reach the extraordinary valuation of $1 million.
Recent developments indicate growing optimism as four major Bitcoin ETF issuers engage in discussions with the SEC. Bloomberg ETF analyst James Seyffart reports active discussions centering around Bitcoin-related filings, particularly spot Bitcoin ETFs. BlackRock, having met with federal regulators three times in as many weeks, emerges as a prominent player among the companies involved, alongside Grayscale, Franklin, and Fidelity, underscoring the escalating interest and efforts in Bitcoin ETF applications.
BlackRock’s recent modifications to its spot Bitcoin ETF application, aimed at facilitating participation from large banks, exemplify the industry’s adaptability. The revised application introduces new fund shares that can be purchased with cash, broadening options beyond cryptocurrency transactions. The SEC is expected to make a decision on BlackRock’s application by January 15, with a final deadline set for March 15. Seyffart highlights the critical presence of the Division of Trading and Markets and the Division of Corporate Finance during these meetings, underscoring their pivotal role in approving or denying the 19b-4’s and S-1’s.
