Bitcoin Exchange-Traded Funds (ETFs) are expected to be approved before January 10th, 2024, according to Michael Novogratz, the CEO of Galaxy Digital. In an interview with CNBC, Novogratz discussed the current state of the cryptocurrency market and highlighted Bitcoin’s impressive growth of 150% over the past year. He attributed this surge to the Federal Reserve’s dovish stance, emphasizing the central bank’s influence on market trends.
Novogratz expressed confidence in the approval of spot Bitcoin ETFs before the mentioned date, stating that it would further energize the already buoyant Bitcoin and cryptocurrency market. However, he also acknowledged concerns regarding high-risk speculative traders, known as “de-gens,” who are believed to contribute to the market’s volatility.
Addressing Bitcoin’s classification as a safe-haven or speculative asset, Novogratz highlighted its global nature and dismissed concerns about its illicit uses, noting that the narrative of cryptocurrencies being primarily used for terrorist financing has been debunked. He compared the minimal instances of illicit crypto use to the significant fines incurred by traditional financial institutions.
Looking ahead, Novogratz remained bullish on Bitcoin, projecting that even a modest 1% allocation of institutional portfolios to Bitcoin could significantly increase its price due to its limited supply. He suggested that Bitcoin could surpass its all-time high and reach new heights in the coming year.
On the regulatory front, Novogratz mentioned that certain politicians and corporate leaders, including Elizabeth Warren and the Biden White House, have been obstacles to legislative progress in the cryptocurrency space. However, he also noted the existence of a bipartisan group that could provide a robust framework for stablecoins and the broader crypto market, although progress might be delayed until after the upcoming election.
Overall, Novogratz’s remarks reflect optimism for the future of Bitcoin and the broader cryptocurrency market, noting the importance of regulatory clarity for sustained long-term growth.