In a conversation on CNBC’s “Squawk Box,” Galaxy Digital CEO Michael Novogratz offered insights into the evolving Bitcoin investment landscape following the SEC’s approval of spot Bitcoin ETFs.
Market Dynamics and Accessibility
Novogratz highlighted a future where not just one but two or three Bitcoin ETFs could lead the market. Drawing from his experience with the CI Group in Canada, he shared their journey to the top, achieving a mere 1% tracking error
Moreover, Novogratz discussed the simplified access these ETFs provide for average investors. Previously, investing in Bitcoin required technical know-how and strong conviction. Now, the path is clearer and more accessible, opening doors for new investors to partake in Bitcoin’s growth potential.
Despite cautioning against a too-rapid rise in Bitcoin’s value, Novogratz remains bullish about its long-term appreciation. He pointed to Bitcoin’s limited supply and its holders’ steadfastness as key price drivers.
Additionally, he foresees fierce competition among ETF providers like Invesco, Fidelity, and BlackRock. Novogratz underlines that these products are attractive to consumers and institutions due to their low fees.
Lastly, Novogratz touched on the potential impact of these ETFs on Bitcoin’s market cap, which is currently at $950 billion. He anticipates a price surge as demand for Bitcoin increases, given the reluctance of long-term holders to sell.
This development, set against a backdrop of excessive government debt and money printing, marks a historic day in the financial world, signifying a major shift in the investment landscape for Bitcoin.
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