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This BlackRock ETF Could Soar 12,770%, According to Billionaire Michael Saylor

Neil Patel, The Motley Fool

4 min read

In This Article:

  • BlackRock introduced an incredibly popular ETF early in 2024 that now has over $70 billion in assets.

  • The price of the asset this ETF owns could rise almost 12,800% in 20 years, according to billionaire Michael Saylor.

  • 10 stocks we like better than iShares Bitcoin Trust ›

Michael Saylor, the tech entrepreneur who founded the enterprise software provider Strategy (formerly known as MicroStrategy), has a net worth estimated at $9.3 billion. In the past few years, his focus has shifted to Bitcoin, the world's most valuable cryptocurrency. Saylor's business is now accumulating huge amounts of the digital asset.

Based on his view that Bitcoin could skyrocket to $13 million per unit by 2045, Saylor is also implying that this popular exchange-traded fund (ETF), sponsored by giant asset manager BlackRock, also has 12,770% upside from today's price. Here's what investors need to know if they are even remotely interested in boosting their portfolio returns.

ETF on top of stock charts tickers.

Image source: Getty Images.

No one can deny that Bitcoin has been the best-performing asset over the past decade, a period that saw its price soar by 41,820%. Investors who missed the boat might want to heed Saylor's forecast.

The billionaire believes that Bitcoin will reach $13 million in 20 years, using his base case. As of June 23, it's trading at $101,000, so Saylor's prediction implies a 129-fold gain.

The crypto has a fixed supply of 21 million coins. Saylor believes this key feature will make the digital asset more widely held in the future.

In theory, capital will flow from other asset classes -- like bonds, equities, and real estate -- into Bitcoin. The base case calls for 7% of global wealth to find its way to the digital token, strong demand that will drive the price higher.

Investors must realize that while this kind of price target gets a lot of attention, since it shows an annualized return of 27.5%, it's important to understand that no one knows what the future will hold. This is especially true with something like Bitcoin, which is still a relatively new phenomenon in the world of finance.

At the end of the day, what really matters is if you're bullish on Bitcoin or not. Michael Saylor is perhaps the biggest Bitcoin bull ever.

In 2020, following the onset of the pandemic and the unprecedented levels of government stimulus, Saylor completely altered his company's blueprint, with the sole intention of buying and holding as much Bitcoin as possible. Strategy now owns 592,000 Bitcoins, making it the single biggest non-ETF holder in the world.