Galaxy Digital CEO Predicts Institutional Adoption of Cryptocurrencies in 2024
According to Galaxy Digital founder Mike Novogratz, institutional adoption of cryptocurrencies will be the highlight of 2024. This shift will be driven by the anticipated approval of Bitcoin spot exchange-traded funds (ETFs). During Galaxy Digital’s third-quarter earnings call, Novogratz emphasized the firm’s confidence in the approval of several ETFs. The fund manager filed its Bitcoin and Ether ETF applications with the United States Securities and Exchange Commission in partnership with Invesco in Q3 2023.
Investor sentiment has turned bullish, with prominent ETF research analysts predicting the approval of 12 major Bitcoin spot ETF applications by January 2024. Novogratz stated that institutional adoption will start with a Bitcoin ETF, followed by an Ethereum ETF as institutions gain comfort and government approval.
“As institutions get more comfortable, if the government gives its seal of approval that Bitcoin is a thing, you are going to see the rest of allocators starting to look at things outside of that. And so, money will flow into the space.”
Novogratz also mentioned that institutional investment could peak in 2025 as investments in tokenization and wallets increase. He emphasized the importance of dollar-backed stablecoins remaining central to the wider cryptocurrency ecosystem.
“We are going to continue to be dollar-dominant. We better have a dollar-backed stablecoin that reflects our values and is taken up around the world.”
The potential impact of an Ether spot ETF was discussed during the call. Novogratz explained that its possible approval might not be as well received as a Bitcoin ETF due to technical differences related to staking yields. He stressed the importance of different blockchains and their native tokens serving a purpose and having value built on them.
Hot Take: The Impact of Cryptocurrency ETFs on Institutional Adoption
Institutional adoption of cryptocurrencies is set to skyrocket in 2024, driven by the pending approval of Bitcoin spot exchange-traded funds (ETFs). Galaxy Digital founder Mike Novogratz predicts that this shift will bring a significant influx of institutional investment into the cryptocurrency space, starting with a Bitcoin ETF followed by an Ethereum ETF. The potential approval of these ETFs is expected to boost investor confidence and inject substantial funding into the crypto market, paving the way for long-term growth and sustainability.
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