Michael Novogratz Predicts Bitcoin ETF Approval and Price Surge
Michael Novogratz, CEO of Galaxy Digital Holdings Ltd., believes that Bitcoin will reach its previous peak within a year. He attributes this potential surge to the expected approval of the first American exchange-traded fund (ETF) directly holding Bitcoin by the U.S. Securities and Exchange Commission (SEC).
Increasing Interest in Bitcoin ETFs
The interest in Bitcoin ETFs has seen a significant rise, indicating renewed institutional interest in BTC among regulated investors. Several applications for spot Bitcoin ETFs have been filed in the United States.
Last year, Bitcoin experienced a 64% decline after reaching nearly $69,000. However, this year has seen a more than twofold increase, with the current trading value at around $38,000.
Novogratz Anticipates Billions Flowing into Bitcoin ETF
Novogratz predicts that once the Bitcoin ETF is approved, billions of dollars could flow into the space within the first year or even more. He also suggests that the uncertainty surrounding the upcoming election year could further drive interest in digital assets.
Novogratz emphasizes the psychological impact of government approval on market prices. He believes that when the government gives its approval to buy Bitcoin, it will lead to a successful psychological shift.
Surge in Bitcoin ETF Interest
The recent surge in Bitcoin prices has coincided with increased interest from major investment firms like BlackRock and Fidelity. These institutions are waiting for regulatory approval to offer spot Bitcoin ETFs to their clients.
ProShares’ Bitcoin Strategy ETF (BITO), a U.S.-based bitcoin futures fund listed on the Chicago Mercantile Exchange (CME), has reached a record high of $1.47 billion in assets under management (AUM). This surpasses its previous record set in December 2021.
Simeon Hyman, Global Investment Strategist at ProShares, attributes BITO’s success to being a familiar, accessible, and regulated avenue for targeting bitcoin returns. It has also seen significant trading volume since its inception.
Hot Take: Bitcoin ETF Approval Expected to Fuel Price Surge
The anticipation of the SEC’s potential approval of a spot Bitcoin ETF by January 10 has sparked excitement in the crypto market. Michael Novogratz’s prediction of billions flowing into the Bitcoin ETF space further adds to the enthusiasm.
With increasing interest from major investment firms and the success of Bitcoin futures funds like BITO, it is clear that institutional adoption of cryptocurrencies is gaining momentum. The approval of a Bitcoin ETF could be a game-changer, leading to a surge in buying pressure and potentially pushing Bitcoin prices to new heights.
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