Galaxy Digital CEO Mike Novogratz expects the price of bitcoin to be significantly higher when the U.S. Securities and Exchange Commission (SEC) approves spot bitcoin exchange-traded funds (ETFs). “We will see a pretty successful shift of psychology … when the government says ‘you are allowed to buy bitcoin,'” he described.
Galaxy Digital CEO Michael Novogratz explained why the price of bitcoin is poised to rise “significantly higher” in an interview on Bloomberg TV Wednesday. His bullish prediction hinges on the potential approval of the first U.S. spot bitcoin exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC).
Novogratz detailed: “There’s a bunch of good things happening for bitcoin. We are going to get an ETF. Right now there’s a lot of anticipation. Some of that is built into the price.” He added that when you actually get a spot bitcoin ETF announcement, which he believes to be two months before it starts trading, Blackrock, Ark, Fidelity, as well as his own firm will “have their sales forces out convincing people to adopt bitcoin.” The Galaxy Digital boss emphasized:
The price is going to be significantly higher especially at the time when the Fed is probably cutting rates.
“So, could we go to old highs by this time next year? Of course, we could,” he added.
Regarding whether the price of bitcoin could rise higher than its all-time high by this time next year, Novogratz pointed out: “Remember, prices are set on the margin, and there aren’t that many sellers of bitcoin. We’re going to have the halving next year which means that the daily supply or inflation rate gets cut in half, so you are really setting up for a wonderful story.” Moreover, he noted: “We’re also going into election year and that uncertainty should help bitcoin in the fact that the U.S., Europe, and Japan still can’t come close to fiscally being responsible.”
Once spot bitcoin ETFs enter the market, Novogratz predicted that billions of dollars should flow into the ETF space, if not more. He emphasized:
That’s all new money. We will see a pretty successful shift of psychology … when the government says ‘you are allowed to buy bitcoin’ and institutions say ‘this is great.’
SEC Chairman Gary Gensler recently stated that the securities regulator is considering between eight and 10 spot bitcoin ETF applications. Many expect the SEC to approve multiple spot bitcoin ETFs at once early next year.
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