In a recent “Altcoin Daily” episode, hosts Aaron and Auston Arnold interviewed Michael Saylor, Co-Founder and Executive Chairman of MicroStrategy Inc. (NASDAQ: MSTR). The discussion revolved around the increasing adoption of Bitcoin by major financial institutions and its potential benefits as a form of sound money.
Saylor argued that Bitcoin could solve economic problems for individuals and society as a whole, but it needs to be adopted by a wider range of institutions, not just early adopters. He emphasized the need for various institutions, such as funds, investors, manufacturers, trucking companies, unions, cities, states, agencies, charities, universities, and churches, to adopt an infrastructure of institutional custodians.
He highlighted the importance of large banks and institutional investors in providing this infrastructure, as they hold public money and are trusted with the funds of other institutions. He mentioned the involvement of entities like Deutsche Bank and Credit Agricole, as well as the significance of BlackRock endorsing Bitcoin through an ETF application.
The interview also touched on the denial of 20 spot ETFs by the SEC and the significance of the announcement of the EDX exchange, which several major Wall Street firms back. Saylor stated that the crypto industry now has compliant exchanges and products, which may lead to the approval of EDX.
Saylor concluded that there is political pressure to approve a spot ETF, and the circumstances have changed, allowing the SEC to approve it without contradicting previous guidance. He discussed the challenges institutions face when trying to gain exposure to Bitcoin. One way to do this is by buying the underlying asset, but finding the right exchange and arranging custody can be difficult. A simpler way is to buy a spot ETF.
Saylor believes that the availability of a spot ETF is a significant milestone for institutional adoption. Saylor pointed out that the engagement of Fidelity, Citadel, BlackRock, and Schwab in this exercise is significant. The approval of a spot ETF is a major milestone in regulatory clarity.
Saylor suggested that Wall Street is coming together to offer securities and exchange services and indirect custody services for mainstream investors.
As for the four milestones that will drive mainstream adoption of Bitcoin, he mentioned the availability of a spot ETF, the recognition of Bitcoin as an asset class, the normalization of accounting through fair value accounting, and the Bitcoin halving.
Saylor concluded with a bullish outlook, stating that Wall Street and the general community are internalizing these milestones. He believes that these developments will drive mainstream adoption of Bitcoin and potentially send its value to $1,000,000.
