Galaxy Digital CEO Predicts Spot Bitcoin ETF Approval in January 2024
In a recent interview, CEO of Galaxy Digital, Mike Novogratz, made a prediction that US regulators will approve a spot Bitcoin ETF by January 2024. Novogratz attributes Bitcoin’s impressive increase in value to a favorable stance by the Federal Reserve, noting a 150% increase in the past year.
Bitcoin ETF Approval Imminent
Novogratz expresses confidence in the approval of a spot Bitcoin ETF before January 10th, highlighting the date’s significance due to potential legal implications. He believes that an improved macro backdrop in the US could lead the Securities and Exchange Commission (SEC) to finally approve a spot Bitcoin or crypto ETF, energizing the crypto market.
“I think crypto likes it. We’re going to get this ETF before the 10th of January. That’s kind of the drop-dead date that Gensler has before he gets in trouble with the Grayscale.”
Novogratz raises concerns about the behavior of high-risk, speculative traders known as de-gens, who contribute to significant volatility in the crypto markets. Analysts, including Novogratz, believe there is a small window between January 5th and January 10th for the SEC to approve a spot Bitcoin ETF.
“Window is officially from the 5th of January to the 10th of January. Really, this means that any potential approval orders are going to come on either Monday, the 8th of January, Tuesday, the 9th of January, or Wednesday, the 10th of January. Mark your calendars, people.”
Bitcoin A Safe Haven
Novogratz discusses Bitcoin’s classification as a “safe haven” or a “speculative asset.” He dismisses concerns about Bitcoin’s illicit use, stating that the narrative of cryptocurrencies being used for illicit financing has been debunked. Novogratz compares the low instances of crypto being used for illegal means to significant fines incurred by traditional financial institutions.
Future Regulatory Landscape
Novogratz remains bullish on Bitcoin and suggests that even a 1% allocation of institutional portfolios towards Bitcoin could significantly increase its price due to limited supply. He is confident that Bitcoin will surpass its previous all-time high in 2024. Novogratz also acknowledges that certain politicians and corporate leaders have been obstacles to cryptocurrency regulation, but believes that a bipartisan effort could lead to a robust framework for stablecoins and the crypto market. However, he believes substantial progress may be delayed until after the upcoming elections.
Hot Take: Spot Bitcoin ETF Approval and Crypto Market Optimism
Galaxy Digital CEO, Mike Novogratz, predicts that a spot Bitcoin ETF will be approved by US regulators in January 2024, stating that this would energize the already buoyant and optimistic crypto market. Novogratz highlights the significance of a potential approval before January 10th and expresses confidence in the SEC’s decision. However, he raises concerns about the behavior of high-risk traders and their impact on market volatility. Despite this, Novogratz remains bullish on Bitcoin’s long-term outlook and suggests that regulatory progress may be delayed until after the upcoming elections.
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