Novogratz on Crypto Developments
On 8 December 2023, Michael Novogratz, founder, chairman, and CEO of Galaxy, appeared on CNBC’s “Squawk Box” with co-anchor Andrew Ross Sorkin to discuss several key topics in the cryptocurrency space, including Bitcoin’s recent surge, the overall crypto rally, Jamie Dimon’s comments on crypto, the state of spot Bitcoin ETFs, and the outlook for 2024.
Dimon’s Strong Stance on Cryptocurrencies
On 6 December 2023, at the Senate Banking Committee hearing titled “Annual Oversight of Wall Street Firms,” Jamie Dimon, Chairman and CEO of JPMorgan Chase & Co., voiced a strong stance against cryptocurrencies. He suggested that the government should contemplate the shutdown of the crypto industry, citing its potential to circumvent government regulations and attract illicit activities.
Regulatory Focus on Cryptocurrency Sector
Amid increasing regulatory focus on the cryptocurrency sector in Washington, Senator Elizabeth Warren is advocating for the Digital Asset Anti-Money Laundering Act, as Sarah Wynn for The Block reported. This legislation seeks to expand Know Your Customer (KYC) regulations to various entities in the crypto sector.
Novogratz on Bitcoin’s Rise
Novogratz commented on the significant rise in Bitcoin’s price, which has soared over 150% this year, recently topping $44,000. He attributed this rally to moderating US rate expectations, as evidenced by the drop in the 10-year Treasury yield.
Novogratz on JPMorgan CEO’s Remarks
Addressing JPMorgan CEO Jamie Dimon’s suggestion to the Senate Banking Committee that cryptocurrency should be banned, Novogratz expressed surprise at Dimon’s stance. He pointed out that many of JPMorgan’s clients, including prominent investors, believe in Bitcoin as a store of value.
Progress in Spot Bitcoin ETFs
Novogratz discussed the progress in the development of spot Bitcoin ETFs. He mentioned the detailed updates in the S-1 filings by BlackRock and Bitwise, indicating a high level of scrutiny by the SEC. He highlighted the changes in BlackRock’s filing, particularly regarding custody arrangements and the creation of an Intraday Indicative Value (IIV).
Interest from Institutional Investors
Novogratz expressed confidence that the SEC would soon approve a spot Bitcoin ETF, citing shifts in the regulatory landscape and the types of questions being asked in the application process.
Novogratz on Institutional Interest in Cryptocurrencies
Novogratz observed a growing interest in cryptocurrencies from institutional investors, as indicated by the rising CME futures basis for Bitcoin and Ether. He suggested that institutions without direct access to BTC or ETH spot markets might have been paying a premium for crypto exposure.
Hot Take
Crypto expert Michael Novogratz shares insights on Bitcoin’s surge, regulatory focus, and institutional interest in cryptocurrencies. Jamie Dimon’s stark stance against cryptos and progress in developing spot Bitcoin ETFs were also key topics discussed.
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