Ethereum
Did MicroStrategy make a mistake by choosing Bitcoin over Ethereum? The analyst gives his opinion
Earlier today, the U.S. Securities and Exchange Commission (SEC) approved 19b-4 filing for eight Ethereum spot 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. As far as the crypto community remembers this week, the regulator unusually “scrambled” and hastily communicated to track down ETF issuers to amend their applications.
Did MicroStrategy make a mistake by choosing Bitcoin over Ethereum?
With Ethereum Spot ETFs Likely to Be Issued in Coming Weeks, Analyst on X Now think Michael Saylor, the former CEO of MicroStrategy, missed out on big rewards by choosing Bitcoin over Ethereum. Since May 24, MicroStrategy, a business intelligence company and now one of the largest public companies in the United States, has increased its BTC holdings over the years.
According to Bitcoin TreasuresMicroStrategy is the largest public company holding BTC, controlling 214,400 BTC worth over $14 billion at press time.
However, as the US SEC gets the ball rolling for Ethereum spot ETFs, the analyst is now highlighting a hypothetical scenario. If MicroStrategy had chosen ETH over BTC, its stake would have been worth over $19 billion at spot rates.
This level means that MicroStrategy would increase by more than $4 billion. Assuming the business intelligence firm chose to buy and not hold but participate, the total value of its holdings would be worth more than $20.9 billion at the end of May 2024.
Trading ETH at a deep discount: will it replicate the success of BTC?
Looking at the implications of the approval and trading of spot Bitcoin ETFs, it becomes apparent that Ethereum prices could 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 climbed past $70,000 and reached an all-time high at around $74,000.
With Forms 19b-4 from eight ETF issuers, including black rock and Fidelity, approved, the only hurdle is approval of S-1 registration statements. There could be delays in this cycle. However, with the green light from the US SEC, spot Ethereum ETF shares will begin trading.
Nonetheless, it is important to note that spot Ethereum ETF issuers will hold the ETH through a regulated custodian and not a stake.
Featured image of DALLE, chart by TradingView