According to CryptoPotato, Michael Novogratz, the founder and CEO of Galaxy Digital Holdings Ltd., predicts that Bitcoin will return to its previous peak within a year, driven by the growing expectation that the U.S. Securities and Exchange Commission (SEC) will approve the first American exchange-traded fund (ETF) directly holding Bitcoin. The surge in Bitcoin ETF interest indicates a resurgence of institutional interest in BTC among regulated and accredited investors, due to the numerous applications for spot Bitcoin ETFs filed in the United States.
Bitcoin reached nearly $69,000 in November 2021 before experiencing a 64% decline last year amid various crypto industry challenges and bankruptcies. However, this year has seen a more than twofold increase, with the current trading value at around $38,000. Anticipation is building around the SEC’s potential approval of a spot Bitcoin ETF by January 10, as suggested by Bloomberg Intelligence analysts. Novogratz believes billions of dollars could flow into the ETF space within the first year or even more upon the ETF’s commencement. He highlighted that the uncertainty of the upcoming election year could further drive interest in digital assets.
The surge in Bitcoin prices in recent months has coincided with heightened interest from major investment firms such as BlackRock and Fidelity. These institutions are awaiting regulatory approval to offer spot Bitcoin ETFs to their clients, a development anticipated to increase buying pressure for the cryptocurrency. Meanwhile, ProShares’ Bitcoin Strategy ETF (BITO), a U.S.-based bitcoin futures fund listed on the Chicago Mercantile Exchange (CME), has reached a record high of $1.47 billion in assets under management (AUM) this week. That surpasses its previous record set in December 2021. Simeon Hyman, Global Investment Strategist at ProShares, highlighted the sustained investor demand for BITO, attributing its success to being a familiar, accessible, and regulated avenue for targeting bitcoin returns. He noted that BITO’s average daily trading volume of $160 million since its inception places it in the top 5% of all U.S. ETFs.
