Michael Saylor thinks a Bitcoin ETF will outperform gold, rivaling the S&P 500.

Michael Saylor, the former CEO of Microstrategy, predicted that when the company prepared for a $700 million investment in BTC, they would outperform gold and rival the S&P 500 index.

Saylor believes Bitcoin funds have the potential to outperform gold ETFs, which have traditionally been among the largest commodity ETFs in the United States.

Bitcoin may soon challenge S&P 500 index ETFs.

In a recent interview, Saylor mentioned that Bitcoin ETFs can outperform S&P 500 index ETFs. Bitcoin ETFs are on an upward trajectory as BlackRock's iShares Bitcoin Trust (IBIT) topped 0.2% of such yields last month.

Sayler describes ETF as a “universal API,” providing investors with seamless ways to trade a variety of currencies, including Bitcoin.

An application programming interface (API) serves as a standard data exchange channel, facilitating interaction between different computer systems. Saylor explained that this framework would serve as a global standard for facilitating trade flexibility or lending.

Prior to the launch of ETFs, getting a loan against Bitcoin was difficult and had high interest rates. Individuals can use stocks as collateral through broker-dealers established with ETFs, such as JP Morgan or Merrill Lynch, he said.

Saylor said these ETFs have opened up a new financial landscape, offering insight, opportunity and practicality to mainstream investors. He added that this development cannot be explained in terms of its impact on the network as a whole.

Backing up Saylor's assertion that Bitcoin ETFs may outperform gold ETFs, analysts suggest that they may emerge as the dominant investment vehicle over the next couple of years compared to the yellow metal's counterparts.

Bitcoin ETFs have seen tremendous growth in a short period of time.

According to BitMEX Research, Bitcoin ETFs collected $8.5 billion in net income despite massive outflows from the grayscale Bitcoin Trust. The iShares Bitcoin Trust (IBIT) and Fidelity Wise Bitcoin Origin Trust (FBTC) experienced record-breaking inflows in their first 30 days of launch. On March 5, IBIT saw an impressive net inflow of $788 million, the highest daily increase for the investment vehicle.

These funds rank among the top 20 actively traded ETFs on a daily basis, with a combined total of more than $6 billion traded on Tuesday — more than even Microsoft.

Meanwhile, MicroStrategy stands as the largest corporate owner of Bitcoin, currently holding 193,000 BTC on its balance sheet. The company has achieved a significant return on investment with over 100% growth, and intends to continue earning more BTC.

In a recent move, MicroStrategy announced that it has issued $700 million in 0.625% convertible senior notes due 2030, with an option for initial purchasers to acquire an additional $100 million in notes.

Originally priced at $600 million, the revised offering is expected to close by March 8. Under certain circumstances, the notes bearing semi-annual interest may be converted into cash, MicroStrategy Class A common stock or a combination thereof.