The approval of a spot bitcoin exchange-traded fund (ETF) could trigger a rapid price surge taking bitcoin to $1 million within weeks, according to crypto expert Samson Mow.
Mow, CEO of blockchain technology company Jan3, believes the combination of limited bitcoin supply and a flood of institutional investment from a spot ETF approval makes the $1 million target achievable in a remarkably short timeframe.
“You’re hitting a very limited supply of bitcoin on the exchanges and available for purchase with a torrent of money,” Mow said in a recent interview. “This is why you can go really high all at one time.”
Major ETF issuers, including BlackRock, Grayscale, Franklin, and Fidelity, have recently met with the SEC, raising hopes for spot Bitcoin ETF approval.
BlackRock, having met with regulators four times in as many weeks, aims to facilitate participation from large banks and awaits an SEC decision by January 15, with a final deadline on March 15.Â
Analysts suggest the involvement of key SEC divisions during these meetings is crucial for approval.
Furthermore, Mow compared the expected price impact of a spot bitcoin ETF to predictions made by entrepreneur Balaji Srinivasan regarding the effects of central bank money printing.
However, while money printing slowly affects asset prices over years, a bitcoin spot ETF could immediately unlock billions in institutional capital seeking to buy scarce bitcoin reserves.
The resulting supply-demand imbalance could push bitcoin to $1 million faster than its previous rallies, including the 2017 run that saw a 20x price increase over 9 months. With spot ETF approval, Mow anticipates dramatically compressed time frames measured in weeks rather than months.
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