Spot Bitcoin ETFs vs MicroStrategy, What's A Better BTC Proxy Bet?

Highlights

Inflows into U.S. spot Bitcoin ETFs surged on Monday to $555 million, marking the highest in over four months.
Nate Geraci said that ETFs provide direct exposure without the same valuation risks of MicroStrategy.
BlackRock CEO Larry Fink predicted that Bitcoin could grow as large as the U.S. housing market.

The spot Bitcoin ETF inflows have surged once again after a dull start to the month of October. On Monday, the US BTC ETFs saw $555 million in inflows scooping 8,359 Bitcoins from the open market. This comes as US indices continue to show strength amid improving macros. Additionally, investors are arguing that BTC ETFs are a better way of seeking exposure to Bitcoin instead of MicroStrategy, as the latter’s valuation looks pricy considering the firm’s $15.5 billion Bitcoin holdings.

Spot Bitcoin ETF vs MicroStrategy

The massive inflows into spot Bitcoin ETFs show potential institutional demand for the investment product. On Monday, Fidelity’s FBTC led the ETF market with $239.3 million in inflows followed by Bitwise’s BITB at $100.2 million in inflows. BlackRock’s IBIT came third at $79.5 million inflows, as per Farside Investors.

These inflows came as the BTC price bounced back all the way to $66,000 earlier today breaching crucial resistance levels. Interestingly, yesterday’s inflows into spot Bitcoin ETFs mark the highest in over four months since June 5, 2024, and the eighth largest daily inflow since the launch in January.

[BIG DAY] The 11 🇺🇸 Bitcoin ETFs saw a massive inflow of $556M on October 14, 2024, as the $BTC price rebounded by 4.6%!

Notably, this marks the largest net inflow since June 5, 2024, and the 8th largest inflow since the launch of BTC ETFs 🚀.

Follow @spotonchain and read the… pic.twitter.com/Wx8e3yqgdN

— Spot On Chain (@spotonchain) October 15, 2024

Besides, investors have started comparing spot BTC ETFs to MicroStrategy (MSTR) as a proxy bet on the world’s largest digital asset. Following a huge rally over the past week to its all-time high above $220 levels, the MicroStrategy stock plunged by 5.1% on Monday.

Market analysts remain divided as to what is a better proxy bet for Bitcoin – the spot BTC ETFs or MicroStrategy. Nate Geraci, the President of ETF Store wrote:

“ETFs provide the same exposure without relying on the continuation of a fragile valuation premium.”

Currently, MicroStrategy’s total Bitcoin holdings are worth $15.5 billion while the company valuation is at $42 billion i.e. 2.7x. Some market analysts have been raising concerns of overvaluation in MSTR against its Bitcoin holdings.

However, “Bitcoin Guy” Rajat Soni has justified the valuations by stating that MSTR offers higher risk-adjusted returns than spot Bitcoin ETFs. Recently Michael Saylor shared his bold plans of converting MicroStrategy into the first trillion-dollar Bitcoin bank.

Larry Fink – Bitcoin Will Be Greater Than US Housing Market

In his latest interview, BlackRock CEO Larry Fink stated that Bitcoin will be as huge as the US housing market. This is a massive statement considering the fact that the size of the US housing market is at $50 trillion.

The housing market could reach $100 trillion by 2040. That’s 76 times Bitcoin’s current market cap of $1.3 trillion. In other words, Bitcoin could hit $5 million, according to one of the most influential figures in global finance. Thus, the inflows so far into spot Bitcoin ETF are just the beginning of the larger picture ahead.

Recommended
Price Analysis

Best Crypto Presales To Invest In September 2025 – Top Upcoming Presale Tokens

Best Crypto AI Trading Bots In 2025

Top Meme Coins To Buy In September 2025

Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets.   He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.