Galaxy Digital’s Novogratz: Bitcoin ETF Approval Inevitable, Anticipates Institutional Surge in 2024
Mike Novogratz, founder and CEO of Galaxy Digital, asserts that the approval of Bitcoin spot ETFs is not a question of “if but when,” predicting a surge in institutional adoption in 2024. During the third-quarter earnings call on Nov. 9, Novogratz emphasized the firm’s conviction that the approval of multiple ETFs is imminent.
Galaxy Digital, in partnership with Invesco, filed applications for spot Bitcoin and Ether ETFs with the United States Securities and Exchange Commission in Q3 2023.
Institutional Surge: 12 Bitcoin ETF Approvals Expected by January 2024
Investor sentiment has turned decidedly bullish in November 2023, driven by the expectation that the U.S. Securities and Exchange Commission (SEC) will approve a dozen major Bitcoin spot ETF applications by January 2024, according to prominent ETF research analysts. Galaxy Digital’s CEO, Mike Novogratz, echoes this sentiment, declaring that 2024 will be a pivotal year for institutional adoption, starting with the approval of Bitcoin ETFs and followed by Ethereum ETFs.
Novogratz anticipates that as institutions become more comfortable with Bitcoin, there will be a broader exploration of other assets in the cryptocurrency space. He predicts a significant influx of money into the crypto space, with institutional investment potentially reaching its peak in 2025, particularly in tokenization and wallets. Additionally, Novogratz underscores the importance of maintaining dollar-backed stablecoins as a central component of the broader cryptocurrency ecosystem, emphasizing the need for a stablecoin that aligns with U.S. values and is globally embraced.
Bitcoin ETF: Catalyst for Institutional Confidence and Cryptocurrency Funding
Mike Novogratz, CEO of Galaxy Digital, emphasizes the transformative potential of a Bitcoin ETF, foreseeing increased institutional confidence and a substantial influx of funding into the cryptocurrency space. He views the ETF as a catalyst that breathes life into the system, providing the capital necessary for the broader crypto ecosystem to thrive. Novogratz believes the long-term trajectory of the crypto industry remains on track.
During the investor call, the potential impact of an Ether spot ETF was discussed. Novogratz expressed reservations, noting that its approval might not be as well-received as a Bitcoin ETF. He highlighted the complexities related to Ethereum’s staking model and suggested that an ETF would need to pass through staking rewards to be competitive with direct ownership and staking. Novogratz emphasized the importance of utility in blockchain networks, stating that native tokens must have a purpose and tangible applications to sustain long-term value.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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