Galaxy Digital’s founder and CEO, Mike Novogratz, is optimistic about a significant shift in the cryptocurrency landscape in 2024. The driving force behind this change? The impending approval of Bitcoin spot exchange-traded funds (ETFs).

ETF Approval: Not a Matter of If, But When

During Galaxy Digital’s third-quarter earnings call, Novogratz confidently expressed the firm’s belief that the approval of several ETFs is imminent. He emphasized that the approval of a Bitcoin spot ETF is not a matter of “if but when.” Galaxy Digital, in partnership with Invesco, filed its spot Bitcoin and Ether ETF applications with the United States Securities and Exchange Commission in Q3 2023.

November 2023 has seen a bullish shift in investor sentiment. This is also with ETF research analysts predicting the approval of 12 major Bitcoin spot ETF applications by January 2024. According to Novogratz, 2024 is poised to be the year of institutional adoption, starting with the Bitcoin ETF and followed by an Ethereum ETF.

Institutional Confidence and Funding Boost

Novogratz sees the approval of a Bitcoin ETF as a catalyst for institutional confidence and a surge in funding within the cryptocurrency space. This ETF, he believes, will breathe new life into the system. Further, it will attract capital that will pave the way for the flourishing of other crypto-related ventures.

Bitcoin ETF

The Galaxy Digital CEO foresees institutional investment reaching its peak in 2025, particularly in areas such as tokenization and wallets. Novogratz emphasizes the importance of the U.S. maintaining a focus on dollar-backed stablecoins, considering them a central component of the broader cryptocurrency ecosystem.

Ether ETF: Potential Challenges

While discussing the potential approval of an Ether spot ETF, Novogratz acknowledges possible challenges. He suggests that an Ether ETF might not be as well-received as a Bitcoin ETF, citing technical differences related to Ethereum’s staking model and staking yields.

The Role of Stablecoins

Novogratz concludes by emphasizing the need for a dollar-backed stablecoin that aligns with U.S. values and gains global acceptance. According to him, such stablecoins will play a crucial role in ensuring the continued dominance of the U.S. dollar in the cryptocurrency landscape.

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