2024 to Mark Crypto Adoption Peak, Led by Bitcoin ETFs: Galaxy Digital's Mike Novogratz
Summary:
Galaxy Digital's CEO Mike Novogratz predicts 2024 as the year of institutional adoption of cryptocurrencies, driven primarily by the expected approval of Bitcoin and Ethereum spot ETFs. An influx of capital is anticipated to flow into the space as more institutions grow comfortable with Bitcoin, especially if the government endorses it. Novogratz also highlighted the importance of dollar-backed stablecoins in the broad crypto space and the potential impact of an Ethereum spot ETF.
Crypto mogul and Galaxy Digital Founder Mike Novogratz has forecasted that the year 2024 will mark a high point in the adoption of cryptocurrencies by mainstream institutions. This change, he says, will primarily be driven by an anticipated approval of Bitcoin (BTC) spot exchange-traded funds (ETFs). Speaking during the company's Q3 earnings announcement on November 9, he expressed confidence that the launch of a number of ETFs is a question of "when", not "if". The groundbreaking applications for Bitcoin and Ethereum (ETH) ETFs, filed in collaboration with Invesco, were presented to the U.S. Securities and Exchange Commission (SEC) in the third quarter of 2023.
Nov. 2023 saw the bullish sentiment amongst investors surge, with notable ETF researchers predicting that the SEC will commence the approval of a dozen prime Bitcoin spot ETF applications by January 2024. Novogratz proclaimed that "2024 is set to be the year of institutional transition, majorly initiated through the Bitcoin ETF, and shortly succeeded by Ethereum ETF."
Novogratz went on to state that as institutions gain heightened comfort levels and government endorsement for Bitcoin, other allocators will start exploring beyond that, enabling funds to fill the space. He speculated that a turning point for institutional investment may be anticipated as early as 2025 with an increased infusion in tokenisation and wallets. He emphasized the need for dollar-backed stablecoins to remain pivotal in the expanding crypto marketplace.
Expressing an ongoing commitment to dollar dominance, he opined, "It is critical for us to maintain a dollar-anchored Stablecoin reflecting our values and gaining global acceptance." He asserted that a Bitcoin ETF would contribute significantly towards institutional confidence while injecting substantial funds in the crypto arena.
During the investor call, Novogratz also touched upon the potential impact of a prospective Ethereum spot ETF. While its acceptance may not equal a Bitcoin ETF, given Ethereum's validation is reliant on a staking model and staking yields, it remains to be seen how it will perform.
Differentiating the tech aspects, he pointed out that if investors are considering returns ranging between 4% to 7% based on staking methods, the utility becomes critical. Novogratz mentioned that for digital currencies to hold their value in the long run, their respective blockchains must serve a purpose and have applications built on them.
Published At
11/10/2023 11:35:09 AM
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