Why is MicroStrategy’s approach good for Bitcoin? Well, it turns out that the crypto investment firm plans to use the proceeds from the sale to buy into Bitcoin. In other words, the offer constitutes a route via which buyers get exposure to the king coin.
Will the move attract more institutional investors back into BTC’s fold? Well, so far, the MicroStrategy share offering constitutes one of the few ways through which institutions in the U.S. can secure Bitcoin exposure. It thus explains the appeal, but does not necessarily mean it will trigger a surge in institutional demand.
It might, however, trigger enough of a confidence boost to trigger more BTC demand. The biggest catalyst for an institutional uptick will likely be the approval of Bitcoin ETFs.The amount of Bitcoin flowing out of large wallets has been rising of late. Some metrics that confirm this include the Purpose Bitcoin ETF holdings, which indicated that the Bitcoin accumulated through this ETF has been cycled back into the market at press time.
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