MicroStrategy Increases Bitcoin Holdings Pre Spot-ETF Decisions

MicroStrategy Increases Bitcoin Holdings Pre Spot-ETF Decisions

MSTR 011223 Daily Chart

Notably, the purchase comes as the markets bet on the SEC approving a batch of BTC-spot ETFs.

BTC-Spot ETF Updates Draw Interest

On Thursday, Bloomberg Intelligence Analysts James Seyffart and Eric Balchunas shared the latest on the BTC-spot ETF race.

Tagged the Bitcoin ETF Derby, Balchunas and Seyffart explored the likely inflows into the BTC-spot ETF market and who could take an early lead.

In a joint note, the ETF analysts had this to say,

“Ark’s spot Bitcoin ETF will likely get a quick $130 million in cash as the firm sells its GBTC stake and instead uses its own ETF for exposure to the cryptocurrency. This potential jump in volume and flows might provide an early edge over rivals – including Blackrock, whose ETF business is 184x the size of Ark’s and a favorite in the spot Bitcoin race.”

Later in the Thursday session, Seyffart shared a potential opening for the SEC to approve BTC spot ETFs, saying,

“Okay, the window for potential spot Bitcoin ETF approval is looking like its gonna be between Jan 5 & Jan 10, 2024 […].“

Coinbase Surged 61.72% in November, Tracking MicroStrategy

In November, Coinbase (COIN) jumped 61.72%. The market reaction to the Binance fine fueled demand for Coinbase shares. Significantly, the gains came despite the ongoing SEC v Coinbase case.

Investors await the court session in January 2024. The SEC and Coinbase will present oral arguments relating to the Coinbase motion to dismiss (MTD). In August 2023, Coinbase filed the MTD, arguing the SEC lacks the statutory authority to regulate crypto exchanges.

Coinbase has a prominent backer in its quest to quash the SEC charges. In August, Senator Cynthia Lummis filed an amicus curiae brief. The brief stated,

“Through this case, the SEC seeks primary influence over economic, political, and legal questions under active consideration by Congress and multiple agencies.”


“The SEC is not suited to the talks of crafting a holistic regulatory framework for crypto assets, particularly through a judicial enforcement action.”

If Judge Katherine Failla grants the MTD, it could significantly affect the US digital asset space. The SEC may even have to dismiss charges against Kraken. A Coinbase win could also end SEC plans to appeal the XRP Programmatic Sales ruling from the SEC v Ripple case.


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