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Looking To Invest In A Bitcoin Spot ETF? Here’s The Best Next Thing

Started by Bitcoin, Apr 23, 2022, 11:42 am

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Looking To Invest In A Bitcoin Spot ETF? Here's The Best Next Thing

The refusal of the SEC to approve a Bitcoin Spot ETF has been an ongoing problem for the crypto space. With the approval of multiple Bitcoin Futures ETFs approved last year, it was thought that a Spot ETF would not be far down the line. This has proven to not be the case as the regulatory body has dragged its feet on this. Seeing this, Michael Saylor, CEO of MicroStrategy, has offered what he believes to be the next best thing in lieu of a Spot ETF.

Invest In MicroStrategy

MicroStrategy's bitcoin play has been a legendary one in the space. The company has direct exposure to the digital asset with its balance sheet holding more than 129,000 BTC. This has caused the value of the company's stock to be closely correlated with the movement patterns of bitcoin. Given this, CEO Michael Saylor has put forward that investing in MicroStrategy is the next best thing for those who are waiting to invest in a BTC Spot ETF.

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Saylor said this in a recent interview with CNBC which was conducted during the Bitcoin Conference in Miami. The CEO explained that MicroStrategy presented an opportunity similar to that of a "nonexistent spot ETF". However, the further explanations from Saylor painted investing in MicroStrategy as a better alternative to actually investing in a BTC spot ETF.

One of the ways in which Saylor believes investing in MicroStrategy was better than a spot ETF was when it came to fees. "If there was a spot ETF, you'd be paying a 1% fee, and it wouldn't be leveraged," the CEO explained. "With MicroStrategy, we have a software company that generates cash flow, so we convert our cash flows into bitcoin."

Bitcoin price char from

BTC declines to $40K | Source: BTCUSD on

According to Saylor, MicroStrategy already operates like a spot ETF which is generating a 4% to 5% tax-deferred yield currently.

Bitcoin Is The Best Bet

It seems MicroStrategy is nowhere close to slowing down on its BTC strategy according to the CEO. Saylor further told CNBC that MicroStrategy does the responsible thing by actually converting from a devaluing currency, which in this case would be the U.S. dollar, to an appreciating asset, referring to BTC.

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As for investors who want exposure to bitcoin, he proposes investing in MicroStrategy to do so. 

“If you want to be 2% exposed to bitcoin, you'd put 2% of your portfolio into MicroStrategy, and the other 98% of your portfolio, you can invest in whatever you want. They don't want the CEO of a publicly traded company to be unpredictable and random."

MicroStrategy still remains the public company with the largest bitcoin holdings. As of the time of this writing, MicroStrategy holds 129,218 BTC on its balance sheet, valued at $5,375,033,982 and accounting for 0.615% of the total BTC supply.

Featured image from The Indian Express, chart from

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