Did MicroStrategy Mess Up By Choosing Bitcoin Over Ethereum? Analyst Weighs In
May 24 2024 - 5:30PM
NEWSBTC
Earlier today, the United States Securities and Exchange Commission
(SEC) approved 19b-4 fillings for eight spot Ethereum
exchange-traded funds (ETFs), paving the way for the highly
anticipated institutional adoption of the second most valuable
coin. The decision comes after months of uncertainty and less than
six months after the regulator approved spot Bitcoin ETFs. For all
that the crypto community can remember this week, the regulator
uncharacteristically “scrambled” and hastily communicated to spot
ETF issuers to make amends to their applications. Related
Reading: Ready For Liftoff: XRP Price Primed To Skyrocket Before
November Did MicroStrategy Make A Mistake Choosing Bitcoin Over
Ethereum? With spot Ethereum ETFs likely to be issued in the next
few weeks, one analyst on X now thinks Michael Saylor,
the former CEO of MicroStrategy, missed big rewards by choosing
Bitcoin over Ethereum. As of May 24, MicroStrategy, a business
intelligence firm and now one of the biggest public companies in
the United States, has been increasing its BTC holdings over the
years. According to Bitcoin Treasuries, MicroStrategy is the
largest public company holding BTC, controlling 214,400 BTC worth
over $14 billion at press time. However, with
the United States SEC setting the ball rolling for spot Ethereum
ETFs, the analyst is now pointing out a hypothetical scenario. If
MicroStrategy had chosen ETH over BTC, their holding would have
been worth over $19 billion at spot rates. This level means
MicroStrategy would be up over $4 billion. Assuming the business
intelligence firm had chosen to buy and not hold but stake, their
total holdings would be worth over $20.9 billion as of late May
2024. ETH Trading At A Huge Discount: Will It Replicate BTC’s
Success? Looking at the aftermath of the approval and
trading of spot Bitcoin ETFs, it becomes apparent that Ethereum
prices might be significantly undervalued at spot rates. After a
brief dip in mid-January, BTC prices surged, propelling Ethereum to
a high of $4,100. In contrast, the world’s most valuable coin
soared to breach $70,000 and set all-time highs at around
$74,000. With 19b-4 forms from eight ETF issuers, including
BlackRock and Fidelity, approved, the only hurdle is the approval
of S-1 registration statements. There might be delays in this
round. However, the United States SEC green lights, spot Ethereum
ETF shares will begin trading. Related Reading: Bitcoin Disappoints
With Fall To $67,000, But Analyst Says Investors Should Not Be
Fazed. Here’s Why Still, it is important to note that spot Ethereum
ETF issuers will hold ETH via a regulated custodian and not stake.
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