Benzinga - Michael Novogratz, CEO of Galaxy Digital Holdings Ltd. (OTC: BRPHF) on Thursday expressed optimism about Bitcoin's (CRYPTO: BTC) potential to return to its previous peak within the next year.
This optimism was fueled by the growing expectation that the U.S. Securities and Exchange Commission (SEC) will greenlight the first American exchange-traded fund (ETF) that directly invests in Bitcoin.
Novogratz, in an interview with Bloomberg, said, “Could we go to old highs by this time next year? Of course.”
This statement comes in the wake of Bitcoin's dramatic journey, where it soared to nearly $69,000 in November 2021, only to plummet by 64% in the following year due to various scandals and bankruptcies in the crypto industry. Despite these setbacks, Bitcoin showed resilience, doubling its value this year and currently hovering around $38,000.
Analysts from Bloomberg Intelligence anticipated the SEC would likely approve a spot Bitcoin ETF by Jan. 10. Novogratz predicted that this approval could trigger a significant influx of capital into the ETF market, potentially amounting to billions of dollars within the first year.
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He also mentioned the uncertainties surrounding the upcoming election year could further boost the appeal of digital assets.
Novogratz emphasized the impact of new investments on market prices, saying, “Prices are set on the margin, so that’s all new money. We will see a pretty successful shift of psychology when the government says you are allowed to buy Bitcoin.”
A long-time advocate for the institutional adoption of cryptocurrencies, Novogratz has been vocal about the positive implications of the SEC's approval of a Bitcoin ETF.
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