Samson Mow, the CEO of JAN3, recently shared his perspectives on the critical role of the newly SEC-approved spot Bitcoin ETFs in the cryptocurrency market.

JAN3 is a company dedicated to advancing the global adoption and integration of Bitcoin. They specialize in providing technologies and solutions for individuals, enterprises, and nation-states to adapt to an economy increasingly influenced by Bitcoin.

Their focus includes developing Bitcoin infrastructure, advising nations on Bitcoin strategies, and creating financial products for the emerging Bitcoin-centric economy. JAN3 emphasizes the concept of ‘Hyperbitcoinization’, a transition toward a Bitcoin Standard, and offers services ranging from wallet development to mining operations.

On January 28, Mow highlighted several key indicators he’s monitoring in the Bitcoin market. These include the inflows into spot Bitcoin ETFs, the rising Bitcoin hashrate, whale accumulation on Bitfinex, the upward trend of Bitcoin’s 200-week moving average, growth in Tether USDT’s Assets Under Management, increasing U.S. government interest payments on debt, rising U.S. Debt-to-GDP ratios, growing nation-state adoption of Bitcoin, rising U.S. real inflation rates, and the expansion of the M3 money supply.

The following day, Mow focused on the rate of Bitcoin accumulation by the recently approved US-listed spot BitcoinETFs, a factor he believes many are overlooking. He compared the recent large Bitcoin acquisitions by MicroStrategy (NASDAQ: MSTR) with the daily accumulation rates of the iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin® Bitcoin Fund (FBTC). Mow pointed out that IBIT’s average daily accumulation is approximately $200M or 4.7k BTC, while FBTC’s is around $175M or 4.2k BTC. This means that these two ETFs together are acquiring about 9k BTC per day, far exceeding the daily Bitcoin mining supply of 900 BTC.

Mow emphasized the implications of these supply-demand dynamics. The demand from just these two ETFs is about 10 times the supply from mining. With the upcoming Bitcoin halving, this demand could become 20 times the supply. Mow also noted that this demand does not include other entities like MicroStrategy, Tether, corporations, nation-states, high-net-worth individuals, and retail investors.

On January 20, Mow shared his views about the substantial fees (1.5%) imposed by the Grayscale Bitcoin Trust (GBTC). Mow pointed out that while GBTC holds a prominent position in the market, their hesitation to reduce fees might be eroding their competitive edge. He highlighted this situation as an active demonstration of market forces at work, underlining the market’s negative reaction to elevated fees.

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