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 previous peak within a year, fueled by the growing expectation that the U.S. Securities and Exchange Commission (SEC) will greenlight the first American exchange-traded fund (ETF) directly holding Bitcoin.

Meanwhile, there has been a surge in Bitcoin ETF interest, indicating resurging institutional interest in BTC among regulated and accredited investors owing to the flurry of applications for spot Bitcoin ETFs filed in the United States.

Novogratz Predicts Billions of Dollars Will Flow into Bitcoin ETF

Bitcoin surged to nearly $69,000 in November 2021, only to experience a 64% decline last year amidst ious crypto industry challenges and bankruptcies. However, this year has seen a more than twofold increase, with the current trading value at around $38,000.

Anticipation is building around the SEC’s potential approval of a spot Bitcoin ETF by January 10, as suggested by Bloomberg Intelligence analysts.

Novogratz believes billions of dollars could flow into the ETF space within the first year or even more upon the ETF’s commencement. He highlighted that the uncertainty of the upcoming election year could further drive interest in digital assets.

Novogratz emphasized the impact of government approval on market psychology, stating that prices are set on the margin, so that’s all new money. He added that there will be a successful psychological shift when the government says you can buy Bitcoin.

Having long advocated for institutional adoption of cryptocurrencies through SEC approval of a Bitcoin ETF, Novogratz has previously stated his expectation of the SEC’s approval by the end of 2023.

Bitcoin ETFs Interest Surges

The surge in Bitcoin prices in recent months has coincided with a heightened interest from major investment firms such as BlackRock and Fidelity. These institutions are awaiting regulatory approval to offer spot Bitcoin ETFs to their clients, a development anticipated to increase buying pressure for the cryptocurrency.

Meanwhile, ProShares’ Bitcoin Strategy ETF (BITO), a U.S.-based bitcoin futures fund listed on the Chicago Mercantile Exchange (CME), has reached a record high of $1.47 billion in assets under management (AUM) this week. That surpasses its previous record set in December 2021.

Simeon Hyman, Global Investment Strategist at ProShares, highlighted the sustained investor demand for BITO, attributing its success to being a familiar, accessible, and regulated avenue for targeting bitcoin returns. He noted that BITO’s average daily trading volume of $160 million since its inception places it in the top 5% of all U.S. ETFs.