Bitcoin advocate and Jan3 CEO, Samson Mow, has provided an in-depth analysis of the supply and demand dynamics of the spot Bitcoin ETF. He has highlighted the factors that support his ambitious projection of a $1 million price target for the premier cryptocurrency.
Taking to his official X page, Mow emphasized a crucial aspect often overlooked by many – the rate of accumulation within the spot Bitcoin ETF. As a regulated investment product, a portion of the funds from these ETFs is invested in the underlying asset, (BTC). Mow drew comparisons to MicroStrategy’s previous accumulations of 14,000 and 16,000 BTC units, applauding the company’s strategic moves.
Drawing further comparisons, Mow turned attention to the BlackRock iShares Bitcoin Trust (IBIT), noting an average daily acquisition of approximately $200 million, equivalent to 4,700 BTC. Fidelity Investments, with its FBTC product, was highlighted for buying around $175 million worth of BTC per day, or 4,200 BTC. Combined, these daily buy-ups amount to approximately 9,000 BTC.
Bitcoin’s Accumulation Signals Impending Supply Crunch
Mow believes that this substantial accumulation is a precursor to a significant supply crunch once the spot BTC ETF product achieves full maturity. Expressing optimism about the current state of the spot Bitcoin ETF market and its ongoing accumulation, Mow pointed out the potential synergy with the impending BTC halving event.
Highlighting that the estimated daily BTC production is 900 BTC, and with two out of the eleven spot Bitcoin ETF issuers in the U.S. buying 9,000 BTC daily, Mow asserted that the demand for this new investment vehicle is currently 10 times the supply. Anticipating the impact of the halving event, he suggested that this ratio would shift to 20 times the supply, providing a positive boost to the cryptocurrency’s price.
Mow, a staunch supporter of his $1 million BTC price forecast, urged money managers to plan their strategies accordingly based on the outlined analysis. As the cryptocurrency market continues to evolve, Mow’s insights provide a compelling perspective on the potential trajectory of Bitcoin’s value.