---
title: "Spot Bitcoin ETF Is Coming, MicroStrategy May Suffer: Here’s Why"
url: https://diffcoin.com/spot-bitcoin-etf-is-coming-microstrategy-may-suffer-heres-why/
description: "Mike Alfred, a value investor, predicts that MicroStrategy will suffer once a spot Bitcoin ETF is approved in the United States"
published: 2024-01-10
updated: 2024-01-10
author: "Mila"
site: "Diffcoin"
---

# Spot Bitcoin ETF Is Coming, MicroStrategy May Suffer: Here’s Why

A value investor, Mike Alfred, predicts that MicroStrategy, the public business intelligence company, will suffer once a spot in the Bitcoin ETF is approved in the United States. In a post on X, Alfred also [noted](https://twitter.com/mikealfred/status/1744411178284306653) that MicroStrategy is down 5% and is trading as “if the market expects the spot ETFs to be approved soon.”

## MicroStrategy’s Premium Will Fall, MSTR Prices Will Drop

Despite the expected reduction in MicroStrategy’s premium, Alfred believes its stock price, currently trading at around $600, may recover steadily in the next bull run.

Looking at the MSTR stock in the daily chart, prices appear to be topping out. Share prices rose to as high as $717 in the first week of January before dropping 16% to spot rates. The sell-off continues when writing with critical primary support at the $475 and $500 zone.

![MSTR share price trending downward on the daily chart| Source: MSTR on NASDAQ, TradingView](https://www.tradingview.com/x/FNr8Ehtx/)

MSTR share price trending downward on the daily chart| Source: MSTR on NASDAQ, TradingView

Analysts now say a regulated spot Bitcoin ETF will see more institutions opting for this product instead of shadowing Bitcoin via the MSTR stock. As a result, the demand for MSTR shares will likely contract.

For this reason, the MSTR sell-off might continue in the short term. However, as Alfred predicts, share prices will recover in later stages and rally to $1,500.

## Will A Spot Bitcoin ETF Lift BTC To $100,000?

Alfred continued that the MSTR recovery will come as Bitcoin floats to set record highs above $100,000. So far, as the community closely monitors the United States Securities and Exchange Commission (SEC) and whether it will approve the first spot Bitcoin ETF, BTC prices are firm, reaching $47,200 on January 8.

Bitcoin bulls believe prices may rally to as high as $69,000, last registered in November 2021, once the coveted derivative product hits the market.

Despite the MSTR price falling, some are confident that buying the stock is a better alternative to a spot Bitcoin ETF. MicroStrategy has indirectly and actively increased shareholders’ exposure to Bitcoin through its accumulation strategy. All this is without charging a management fee, benefiting clients, including institutions, who considered the MSTR stock a “shadow spot Bitcoin ETF.”

![Bitcoin held by MicroStrategy | Source: Bitcoin Treasuries](https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot495.png?resize=1024%2C423)

Bitcoin held by MicroStrategy | Source: Bitcoin Treasuries

To illustrate, Bitcoin Treasuries data on January 9 reveals that MicroStrategy holds 189,150 BTC worth over $8.8 billion at spot rates in its balance sheet. This figure means it leads public companies who own Bitcoin.

Feature image from Canva, chart from TradingView

[Source link](https://bitcoinist.com/spot-bitcoin-etf-microstrategy-may-suffer/)