Sources close to Galaxy Digital
According to sources within Mike Novogratz’s Galaxy Digital, the firm has had discussions with hundreds of investment companies about investing in Bitcoin. Even though the SEC has not yet approved a spot Bitcoin exchange-traded fund (ETF), experts predict that the market could see an influx of $100 billion in investments from Wall Street.
Galaxy Digital’s Call with Investment Firms
Galaxy Digital reportedly held a call with around 300 investment professionals to discuss increasing their exposure to Bitcoin. Although the outcome of these talks is uncertain, some investment firms have already been in contact with their clients about potential Bitcoin investments. Bloomberg reports that Summit Wealth Partners has received inquiries from both young and old investors.
Galaxy Digital’s Market Estimations
Galaxy Digital estimates that the potential market size for a U.S. Bitcoin ETF could reach $14 trillion within a year of its launch, with a projected $39 billion by the third year. However, the firm also acknowledges that factors such as price performance could affect these estimations.
SEC’s Delayed Approvals and Challenges
The SEC has been delaying ETF application approvals, citing uncertainty around crypto-based investment products. BitGo CEO Mike Belshe expects further hurdles due to unresolved market structure issues.
Hot Take
While the SEC’s delays and market uncertainties persist, the potential for a significant influx of institutional-level interest in Bitcoin ETFs from Wall Street investors continues to grow. Galaxy Digital’s estimations highlight the immense market potential that could be realized with the approval of a U.S. Bitcoin ETF. However, unresolved issues and concerns still pose challenges that need to be addressed moving forward.
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