Michael Novogratz’s Take on SEC Approval and Bitcoin ETFs’ Impact

on January 11, 2024, Michael Novogratz, the big boss at Galaxy Digital, had a chat with CNBC’s “Squawk Box,” and boy, did he spill the beans on some interesting stuff for all the Bitcoin buffs out there.

Bitcoin ETFs – Not Just One, but Two or Three Big Shots

Novogratz had this hot take that in the long haul, we won’t just have one kingpin Bitcoin ETF; we’re talking about two or three major players here. He drew from his time with the CI Group in Canada, where they started as the underdogs and ended up ruling the ETF scene. The key? Keeping a super close eye on Bitcoin’s price and watching out for those sneaky fees hiding in the ETF shadows.

First Day Chaos and Grayscale’s Redemption Rollercoaster

He predicted the launch day of these ETFs would be like a market mosh pit. Everyone’s sales forces would be duking it out to snag investments. And get this, he also foresaw folks cashing in on Grayscale, selling like there’s no tomorrow because, hey, who wouldn’t want to make a quick buck at par value?

Bitcoin for Everyone – No Tech Guru Required

Novogratz also spilled the tea on how these new ETFs are changing the game, making Bitcoin investing a breeze for regular folks. Remember the days when you needed a tech degree to buy Bitcoin? Yeah, not anymore. Novogratz thinks it’s not too late for newbies to jump on the Bitcoin bandwagon and ride the potential growth wave.

Long-Term Bitcoin Love and the Fear of $750,000

He’s hopeful that Bitcoin doesn’t hit $750,000 too soon (because that would spell trouble for the economy), but Novogratz is a firm believer in its long-term rise. With limited supply and die-hard holders unwilling to part ways with their precious Bitcoins, he thinks the price is destined to climb.

ETF Battle Royale – Invesco, Fidelity, BlackRock, and the Tracking Error Game

Novogratz predicted an all-out war among the ETF giants – Invesco, Fidelity, BlackRock – with the winner being the one with the least tracking error. And let’s not forget, he gave a nod to the low fees, making these ETFs a sweet deal for both regular Joes and big-shot institutions.

Bitcoin Market Cap Booming with Spot ETFs

What about the impact on Bitcoin’s market cap, currently lounging around $950 billion? Novogratz thinks these spot Bitcoin ETFs will be the rocket fuel, sending Bitcoin’s price skyrocketing. Why? Because demand will shoot up, and the hodlers won’t be quick to cash out.

Bitcoin’s Rise in the Face of Global Economic Drama

Novogratz didn’t stop there – he zoomed out to the bigger picture, pointing fingers at governments drowning in debt and money printers working overtime. According to him, the approval of spot Bitcoin ETFs in the U.S. is like a historic touchdown in the financial world, marking a day to remember.