Bitcoin ETF Will Be Approved Before Jan-10th 2024: Says CEO of Galaxy Digital – Coinpedia Fintech News
December 20, 2023In a recent CNBC interview, Michael Novogratz, CEO of Galaxy Digital, shared his thoughts on the current state of the cryptocurrency market, with a particular focus on Bitcoin. Novogratz noted Bitcoin’s impressive 150% increase in value over the past year, attributing this surge to the Federal Reserve’s dovish stance. He emphasized the central role of the Central Bank in influencing market trends across various asset classes, including fixed income and equities.
The Anticipation of Bitcoin ETFs
Shifting the discussion to Bitcoin Exchange-Traded Funds (ETFs), Novogratz expressed confidence in approving spot Bitcoin ETFs before January 10th. He highlighted this date’s significance due to potential legal implications and anticipated that such approval would further energize the already buoyant Bitcoin and cryptocurrency market.
Despite his optimism, Novogratz acknowledged some concerns, particularly regarding the behavior of high-risk speculative traders, colloquially known as “de-gens” or degenerates. These traders are believed to contribute to the intense volatility in the cryptocurrency market.
Bitcoin: Safe Haven or Speculative Asset?
Addressing Bitcoin’s classification as either a ‘safe-haven’ or a ‘speculative asset,’ Novogratz highlighted Bitcoin’s global nature. He dismissed concerns about its illicit uses, stating that the narrative of cryptocurrencies being primarily used for terrorist financing had been debunked. He compared the low instances of illicit crypto use to the significant fines incurred by traditional financial institutions, such as JPMorgan.
The Future Outlook and Regulatory Landscape
Looking ahead, Novogratz remained bullish on Bitcoin. He suggested that even a modest 1% allocation of institutional portfolios to Bitcoin could significantly increase its price due to its limited supply. He projected that Bitcoin could surpass its all-time high of $69,000, reaching new heights in the coming year.
On the regulatory front, Novogratz mentioned that certain politicians and corporate leaders, including Elizabeth Warren and the Biden White House, have been obstacles to legislative progress in cryptocurrency. He cited a bipartisan group that could provide a robust framework for stablecoins and the broader crypto market. Still, he indicated that substantial progress might be delayed until after the upcoming election.
Optimism Amidst the Need for Clarity
In summary, Novogratz’s remarks underscore a prevailing optimism regarding the future of Bitcoin and the broader cryptocurrency market. He sees the dovish stance of the Federal Reserve, potential ETF approval, and growing institutional interest as catalysts for further market gains while acknowledging the importance of regulatory clarity for sustained long-term growth.
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