In a recent earnings call on November 9, Galaxy Digital’s founder and CEO, Mike Novogratz, shared his optimistic outlook on the cryptocurrency market for 2024, emphasizing that institutional adoption will take center stage. According to Novogratz, the catalyst for this surge will be the anticipated approval of Bitcoin spot exchange-traded funds (ETFs).
During the third-quarter earnings call, Novogratz expressed confidence in the approval of several ETFs, stating that it is now not a matter of “if but when.” Galaxy Digital, in collaboration with Invesco, filed spot Bitcoin and Ether ETF applications with the United States Securities and Exchange Commission in Q3 2023.
Market sentiment has turned bullish in November 2023, with notable ETF research analysts predicting that the SEC will approve 12 major Bitcoin spot ETF applications by January 2024.
Novogratz envisions 2024 as a pivotal year for institutional adoption, starting with the approval of Bitcoin ETFs, followed by potential Ethereum ETFs. He anticipates that as institutions become more comfortable and the government signals its approval of Bitcoin, a broader range of investors will explore opportunities beyond Bitcoin, leading to an influx of funds into the cryptocurrency space.
The Galaxy Digital CEO suggested that institutional investment could reach its zenith in 2025, especially with increased investments in tokenization and wallets. Additionally, he emphasized the importance of maintaining dollar-backed stablecoins as a central component of the broader cryptocurrency ecosystem, asserting that the U.S. should prioritize a stablecoin that reflects its values and is widely accepted globally.
According to Novogratz, the approval of a Bitcoin ETF will instill institutional confidence and bring substantial funding into the cryptocurrency market. He sees the ETF as a catalyst that breathes life into the system, allowing other aspects of the crypto space to thrive.
While discussing the potential approval of an Ether spot ETF, Novogratz acknowledged that it might not garner as much enthusiasm as a Bitcoin ETF. He highlighted the technical differences, particularly Ethereum’s staking model and staking yields. Novogratz pointed out that unless an ETF can incorporate staking rewards effectively, it may be considered a subpar product compared to owning and staking Ethereum directly.
Novogratz stressed the importance of utility for different blockchains and their native tokens, emphasizing that they need to “serve a purpose” and have tangible applications built on them to sustain long-term value.