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Bitcoin (BTC) has the potential to rise to $1 million within days or weeks of a spot Bitcoin exchange-traded fund (ETF) being approved.
According to Jan3 CEO Samson Mow, the combination of limited Bitcoin supply on exchanges and a surge in institutional investment will drive the price to unprecedented levels in a remarkably short period of time.
“They come across a very limited supply of Bitcoin on exchanges and can buy it with a flood of money,” he said said in a recent interview.
“That’s why you can suddenly go really high.”
Mow highlighted the influx of institutional capital that is expected to accompany the approval of a spot ETF, explaining that there will be a flood of money to purchase the limited available Bitcoins on exchanges.
The surge in demand, combined with the supply shortage, could lead to a rapid and significant price increase.
Mow compares this expected rally to entrepreneur Balaji Srinivasan's predictions, claiming that the impact of a spot Bitcoin ETF approval on prices will unfold much faster than the impact of central bank money printing.
As money printing slowly permeates the economy over the years, the approval of a spot ETF could lead to a sudden and explosive increase in Bitcoin's value.
Mow expects the rise to $1 million to occur at an unprecedented pace compared to previous Bitcoin bull runs.
The 2017 rally took nine months to achieve a 20-fold increase in value.
However, given the inflow of billions of dollars through ETF approvals, Mow expects the time frame to reach $1 million to be significantly shorter.
Major ETF issuers met with the SEC
Four well-known issuers of Bitcoin exchange-traded funds (ETFs) have reportedly attended meetings with the SEC in recent days.
According to Bloomberg ETF analyst James Seyffart, these issuers have been actively discussing their Bitcoin-related filings with the SEC, raising hopes that spot Bitcoin ETFs will be approved soon.
Prominent among the companies involved is BlackRock, which met with federal regulators on December 12 for the third time in as many weeks.
Grayscale, Franklin and Fidelity also had meetings with the SEC last week, indicating growing interest and efforts surrounding Bitcoin ETF applications.
BlackRock recently made changes to its spot Bitcoin ETF application to make it easier for large banks to participate.
The updated application introduced new fund shares that can be purchased with cash, expanding options beyond just using cryptocurrencies.
The SEC is expected to rule on BlackRock's application by January 15, with a final deadline set for March 15.
Seyffart noted that both the Department of Trade and Markets and the Department of Corporate Finance were present at these meetings because they hold the key to approving or rejecting the 19b-4 and S-1.
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