Galaxy Digital CEO Mike Novogratz holds the belief that Bitcoin has permanently surpassed the $55,000 mark after surging past $73,500 earlier this week.
In an interview with CNBC, Novogratz acknowledged the current exuberance in the market, with high funding rates suggesting a potential correction. However, he expressed confidence, stating, “I don’t think we’ll go back below fifty thousand, fifty-five thousand.”
Novogratz’s Perspective on Bitcoin ETFs
Novogratz anticipates Bitcoin’s price trajectory to continue upward as long as inflows into the recently launched U.S. Bitcoin spot ETFs remain robust.
Since their inception, funds from BlackRock, Fidelity, and other institutions have collectively attracted over $11 billion in net inflows, including a notable $1 billion on Tuesday alone. Analysts widely regard BlackRock’s iShares Bitcoin fund as the most successful ETF launch in history.
Novogratz, whose company partnered with Invesco to launch one of the new Bitcoin ETFs, noted that their fund has accumulated $368.6 million in BTC.
Regulatory Landscape in Crypto
U.S. regulators had been reluctant to approve Bitcoin spot ETFs for years until a lawsuit from Grayscale prompted a shift in their stance. According to a late 2023 Bitwise survey, most financial advisors were skeptical about the approval of a Bitcoin ETF in 2024 until the funds actually went live.
Novogratz highlighted a broad endorsement of Bitcoin by the U.S., citing regulatory approval as evidence. However, regulators still exhibit hesitancy towards approving an Ethereum spot ETF, with analysts now uncertain about approval by May 2024. Securities and Exchange Commission (SEC) chairman Gary Gensler maintains that one of Bitcoin’s primary use cases is money laundering.