Did MicroStrategy Mess Up By Choosing Bitcoin Over Ethereum? The analyst weighs himself

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Earlier today, the U.S. Securities and Exchange Commission (SEC) approved 19b-4 filings for eight spot exchange-traded funds (ETFs), paving the way for the long-awaited 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. From what the crypto community remembers from this week, the regulator uncharacteristically “coded” and rushed to detect ETF issuers to redress their applications.

Did MicroStrategy make a mistake by choosing Bitcoin over Ethereum?

With Ethereum spot ETFs likely to launch in the next few weeks, one analyst is already on X thinks Michael Saylor, former CEO of MicroStrategy, missed out on massive rewards by choosing Bitcoin over Ethereum. As of May 24, MicroStrategy, a business analytics company and now one of the largest public companies in the United States, has been increasing 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.

MicroStrategy Loses Billions After Choosing BTC Over ETH | Source: @LeonWaidmann via X

However, since the US SEC decided to introduce cash ETF funds on Ethereum, the analyst is currently pointing to a hypothetical scenario. If MicroStrategy had chosen ETH over BTC, their holdings would have been worth over $19 billion at spot rates.

This level means that MicroStrategy will grow by more than $4 billion. Assuming the business analytics company decided to buy, not hold, shares, at the end of May 2024, its total share value would be over $20.9 billion.

ETH Trading at a Huge Discount: Will It Repeat BTC’s Success?

Looking at the implications of the approval and trading of Bitcoin spot ETFs, it becomes obvious that Ethereum prices may be significantly undervalued at spot rates. After a brief decline in mid-January, BTC prices soared, pushing Ethereum to a high of $4,100. In contrast, the world’s most valuable coin rose sharply, surpassing $70,000 and setting an all-time high at around $74,000.

Ethereum price is rising on the daily chart |  Source: ETHUSDT on Binance, TradingView
Ethereum price is rising on the daily chart | Source: ETHUSDT on Binance, TradingView

With Forms 19b-4 approved from eight ETF issuers, including BlackRock and Fidelity, the only remaining hurdle is approval of S-1 registration statements. There may be delays during this round. However, the US SEC gives the green airy, Ethereum ETF spot shares will start trading.

Still, it’s crucial to note that Ethereum spot ETF issuers will hold ETH through a regulated custodian and not invest in equities.

Feature image from DALLE, chart from TradingView


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