Bitcoin ETFs Will Drive Institutional Adoption by 2024 – Galaxy Digital’s Mike Novogratz

Galaxy Digital Founder Mike Novogratz He told investors that 2024 will be headlined by institutional cryptocurrency adoption, led by the pending Bitcoin (BTC) spot exchange-traded funds (ETFs).

In Galaxy Digital's third-quarter earnings call on Nov. 9, Novogratz highlighted the company's belief that approving more ETFs is “not a matter of now, but when.” The fund manager filed its position Bitcoin and Ether (ETH) ETF applications with the United States Securities and Exchange Commission in Q3 2023 in partnership with Invesco.

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Investor sentiment has turned bullish in November 2023, with prominent ETF research analysts predicting that the SEC will approve 12 major Bitcoin spot ETF applications in January 2024.

“2024 will literally be the year of institutional adoption, primarily through the Bitcoin ETF, which will be followed by the Ethereum ETF,” Novogratz said during the Q3 earnings call.

“As institutions get more comfortable, if the government gives its stamp of approval that bitcoin is a thing, you'll see the rest of the indicators start looking at things outside of that. And money will flow into the space.”

Novogratz added that institutional investment could come to the fore by 2025 as investments “in tokenization and wallets” increase. The Galaxy Digital CEO added that a key focus for the US landscape is to ensure that dollar-backed stablecoins remain a central cog in the broader crypto ecosystem.

“We will continue to be dominated by the dollar. Better to have a stable dollar-backed currency that reflects our values ​​and is accepted around the world.

According to Novogratz, the Bitcoin ETF brings institutional trust and a significant amount of funding to the cryptocurrency space.

“This ETF will put life into the system while giving us all breathing space. That will bring capital to allow the rest to flourish. But I think if you look at the long-term plan for crypto, it's on target,” he added.

The potential impact of the Ether Spot ETF was also raised during the investor call. The CEO of Galaxy Digital said that Ethereum's proof-of-concept model is based on a staging model and based on collecting yield, so its approval may not be as good as Bitcoin ETF.

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“If you can't figure out the ETF going through the real rewards, it's going to be a better product than someone like us holding Ethereum and having it included in a stock,” Novogratz explained.

He said that if investors look at the yield of 4% to 7% depending on the distribution method, the technical difference will be high. Novogratz emphasized that different blockchains and their generational tokens have “purposes to serve” and “things built on top of them” to maintain long-term value.

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