During Galaxy Digital’s recent third-quarter earnings call, CEO Mike Novogratz highlighted the imminent shift toward institutional adoption within the cryptocurrency market. Novogratz emphasized the company’s belief that the approval of multiple Bitcoin spot exchange-traded funds (ETFs) is on the horizon, describing it as a question of ‘when’ rather than ‘if.’
With Galaxy Digital’s filing of spot Bitcoin and Ether ETF applications in collaboration with Invesco, Novogratz foresees a significant industry shift in the forthcoming year. The company’s confident stance coincides with rising investor sentiment and the anticipation that the SEC will greenlight around 12 major Bitcoin spot ETF applications by early 2024.
“2024 is poised to witness an era of institutional adoption, primarily driven by the introduction of a Bitcoin ETF, likely followed by an Ethereum ETF,” remarked Novogratz during the earnings call. He highlighted the anticipated cascading effect, expressing that once institutional comfort increases and governmental approval solidifies Bitcoin’s credibility, it will pave the way for diversification within the space.
Novogratz also hinted at the potential surge in institutional investments by 2025, particularly focusing on tokenization and wallet advancements. He stressed the importance of maintaining dollar-backed stablecoins as a vital component in the broader cryptocurrency ecosystem, ensuring they align with prevailing values and secure global uptake.
Highlighting the significance of a Bitcoin ETF, Novogratz expressed that it would not only infuse institutional confidence but also usher in substantial capital into the cryptocurrency domain, fostering growth and development across the sector. Nevertheless, he pointed out the likelihood of a disparity between an Ethereum ETF and direct ownership coupled with staking benefits, underlining the importance of Ethereum’s utility and ecosystem development for sustained value.
Novogratz emphasized the necessity for various blockchains and their native tokens to offer tangible utility and serve as robust platforms for sustainable long-term value. He underscored that the future of cryptocurrencies is inherently tied to their ability to serve specific purposes and host a range of functional applications and services.