The founder and CEO of Galaxy Digital, Michael Novogratz, predicts that Bitcoin (BTC) will surpass its previous peak and reach $70,000 within a year. Novogratz’s expectation is supported by the increasing likelihood of the U.S. Securities and Exchange Commission (SEC) approving the first Bitcoin exchange-traded fund (ETF) that directly holds BTC. The growing number of applications for spot Bitcoin ETFs in the U.S. indicates a significant increase in institutional investors’ interest in BTC.
Novogratz believes that spot Bitcoin ETFs can attract billions of dollars to the market and such an initiative could happen within the first year after a spot ETF is launched and starts trading. The crypto billionaire also highlights that the uncertainty surrounding the 2024 U.S. election could further increase interest in cryptocurrencies.
By emphasizing the impact of government approval on market psychology, Novogratz points out that prices are determined marginally and the announcement of the government buying Bitcoin would lead to a significant psychological change. Advocating for the opening up of institutional crypto usage, Novogratz previously stated that the SEC would approve at least one ETF application by the end of this year.
The recent rise in Bitcoin price has been fueled by the increasing interest from major investment firms such as BlackRock and Fidelity. These firms are awaiting regulatory approval to offer spot Bitcoin ETFs to their clients, and this approval is expected to increase buying pressure for cryptocurrencies.
Meanwhile, ProShares’ Bitcoin Strategy ETF (BITO) reached a record level under asset management this week, surpassing the December 2021 record with $1.47 billion. Simeon Hyman, the Global Investment Strategist at ProShares, attributes BITO’s success to being a known, accessible, and regulated option. Hyman notes that BITO has had an average daily trading volume of $160 million since its inception, placing it at the top among all ETFs in the U.S.