Galaxy Digital’s founder and CEO, Michael Novogratz, predicts that Bitcoin (BTC) will surpass its last peak within a year, exceeding $70,000. Novogratz’s expectation is fueled by the growing anticipation that the US Securities and Exchange Commission (SEC) will approve the first exchange-traded fund (ETF) in the US that holds BTC directly. Meanwhile, a series of applications for spot Bitcoin ETFs in the US indicates a significant increase in institutional interest among regulated and accredited investors towards BTC.
Spot ETFs and Bitcoin Price
Novogratz anticipates that spot Bitcoin ETFs could attract billions of dollars into the market and believes that such an influx could happen within the first year or more following the launch and trading of a spot ETF. The crypto billionaire also highlighted that the uncertainty surrounding the 2024 US election year could further increase interest in cryptocurrencies.
Novogratz emphasized the impact of government approval on market psychology, noting that prices are set at the margin and that an announcement by the government that it could purchase Bitcoin would lead to a significant psychological shift. Arguing that the SEC’s approval of a spot Bitcoin ETF would pave the way for institutional adoption of cryptocurrencies, Novogratz had previously expressed his expectation that the SEC would approve at least one ETF application by the end of this year.
The recent rise in Bitcoin’s price coincided with increased interest from major investment firms like BlackRock and Fidelity. These firms are awaiting regulatory approval to offer spot Bitcoin ETFs to their clients, and such approval is expected to increase buying pressure for cryptocurrencies.
Intense Interest in the US-Based Bitcoin Futures Fund BITO
On the other hand, ProShares’ Bitcoin Strategy ETF (BITO), a US-based Bitcoin futures fund listed on the Chicago Mercantile Exchange (CME), reached a record level of $1.47 billion in assets under management (AUM) this week, breaking its December 2021 record. ProShares Global Investment Strategist Simeon Hyman attributed BITO’s success to its being a well-known, accessible, and regulated option. Hyman noted that since its inception, BITO’s average daily trading volume has been $160 million, placing it at the very top among all ETFs in the US.
- Novogratz predicts BTC surpassing $70,000.
- Spot ETFs could dramatically attract billions.
- BITO’s success exemplifies investor confidence.
