Bitcoin ETFs will drive institutional adoption in 2024 - Galaxy Digital’s Mike Novogratz
Galaxy Digital founder Mike Novogratz has told investors that 2024 will be headlined by institutional adoption of cryptocurrencies driven by the pending approval of Bitcoin (BTC) spot exchange-traded funds (ETFs).
During Galaxy Digital’s third-quarter earnings call on Nov. 9, Novogratz highlighted the firm’s belief that approving several ETFs “is now not a matter of if but when." The fund manager filed its spot Bitcoin and Ethereum (ETH) ETF applications with the U.S. Securities and Exchange Commission (SEC) in partnership with Invesco in Q3 2023.
Related: Bitcoin briefly tops $37K amid market optimism for pending spot ETF approvals
Investors' sentiment has turned bullish in Nov. 2023, with prominent ETF research analysts predicting the SEC will begin approving 12 major Bitcoin spot ETF applications by Jan. 2024.
“2024 literally is going to be a year of institutional adoption, primarily first through the Bitcoin ETF, which will be followed by an Ethereum ETF,” Novogratz said during the Q3 earnings call.
Novogratz adds that institutional investment could come to a head in 2025 as investments “in tokenization and wallets” ramp up. The Galaxy Digital CEO added that a key focus for the U.S. landscape should be ensuring that dollar-backed stablecoins remain a central cog in the wider cryptocurrency ecosystem.
According to Novogratz, a Bitcoin ETF will bring a measure of institutional confidence and a significant amount of funding to the cryptocurrency space.
“This ETF is giving us all breathing space, putting life in the system. That brings in capital that allows the rest of the stuff to flourish. But I think if you look at the crypto long-term plan, it’s on target,” he added.
The potential influence of an Ethereum spot ETF was
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