Galaxy’s Novogratz Forecasts BTC Price to Shoot Above $70K on SEC Approval of Bitcoin ETF

Michael Novogratz, the founder and CEO of Galaxy Digital Holdings Ltd., anticipates that Bitcoin will reclaim its earlier peak inside a 12 months, fueled by the rising expectation that the U.S. Securities and Change Fee (SEC) will greenlight the primary American exchange-traded fund (ETF) immediately holding Bitcoin.

In the meantime, there was a surge in Bitcoin ETF curiosity, indicating resurging institutional curiosity in BTC amongst regulated and accredited buyers owing to the flurry of functions for spot Bitcoin ETFs filed in america.

Novogratz Predicts Billions of {Dollars} Will Circulation into Bitcoin ETF

Bitcoin surged to almost $69,000 in November 2021, solely to expertise a 64% decline final 12 months amidst numerous crypto trade challenges and bankruptcies. Nevertheless, this 12 months has seen a greater than twofold enhance, with the present trading value at round $38,000.

Anticipation is constructing across the SEC’s potential approval of a spot Bitcoin ETF by January 10, as instructed by Bloomberg Intelligence analysts.

Novogratz believes billions of {dollars} may circulation into the ETF house throughout the first 12 months or much more upon the ETF’s graduation. He highlighted that the uncertainty of the upcoming election 12 months may additional drive curiosity in digital belongings.

Novogratz emphasised the impact of presidency approval on market psychology, stating that costs are set on the margin, in order that’s all new cash. He added that there might be a profitable psychological shift when the federal government says you should buy Bitcoin.

Having lengthy advocated for institutional adoption of cryptocurrencies by way of SEC approval of a Bitcoin ETF, Novogratz has beforehand said his expectation of the SEC’s approval by the top of 2023.

Bitcoin ETFs Curiosity Surges

The surge in Bitcoin costs in latest months has coincided with a heightened curiosity from main funding companies corresponding to BlackRock and Constancy. These establishments are awaiting regulatory approval to supply spot Bitcoin ETFs to their purchasers, a growth anticipated to extend shopping for stress for the cryptocurrency.

In the meantime, ProShares’ Bitcoin Technique ETF (BITO), a U.S.-based bitcoin futures fund listed on the Chicago Mercantile Change (CME), has reached a document excessive of $1.47 billion in belongings beneath administration (AUM) this week. That surpasses its earlier document set in December 2021.

Simeon Hyman, International Funding Strategist at ProShares, highlighted the sustained investor demand for BITO, attributing its success to being a well-recognized, accessible, and controlled avenue for concentrating on bitcoin returns. He famous that BITO’s common each day buying and selling quantity of $160 million since its inception locations it within the high 5% of all U.S. ETFs.