Bitcoin could experience an explosive surge to $1 million within a short timeframe of mere days or weeks following the approval of a spot Bitcoin exchange-traded fund, according to Samson Mow, CEO of Jan3.
Mow attributes this potential surge to the combination of a limited supply of Bitcoin on exchanges and a substantial influx of institutional investment. In a recent interview, he emphasized the impact of hitting a constrained supply of Bitcoin available for purchase with a significant influx of capital, stating, "This is why you can go really high all at one time."
The CEO anticipates that the approval of a spot ETF will lead to a torrent of institutional capital seeking to acquire the limited available Bitcoin on exchanges. Drawing parallels with predictions from entrepreneur Balaji Srinivasan, Mow suggests that the effects of a spot Bitcoin ETF approval on prices will unfold much more rapidly than the gradual impacts of central bank money printing.
While traditional money printing slowly permeates the economy over an extended period, Mow believes the approval of a spot ETF could trigger a sudden and explosive surge in Bitcoin's value, potentially reaching $1 million at an unprecedented pace compared to previous bull runs.
Highlighting the expected speed of this rally, Mow contrasts it with the 2017 Bitcoin rally, which took nine months to achieve a 20-fold increase in value. However, with the approval of ETFs potentially bringing in billions of dollars, Mow predicts that the timeframe for reaching $1 million could be significantly shorter.
Recent discussions between four prominent Bitcoin ETF issuers and the SEC have fueled optimism regarding the approval of spot Bitcoin ETFs. BlackRock, in particular, has engaged with federal regulators multiple times, making amendments to its spot Bitcoin ETF application to facilitate participation from large banks.
The updated application introduces new shares in the fund that can be purchased with cash, expanding options beyond cryptocurrencies. The SEC is expected to make a decision on BlackRock's application by January 15, with the final deadline set for March 15. ETF analyst James Seyffart notes that the Division of Trading and Markets and the Division of Corporate Finance hold the key to approving or denying the ETF filings.
