2024 is set to be the year of institutional adoption of cryptocurrencies, led first and foremost by a spot-price Bitcoin ETF (ETF) and, subsequently, Ethereum. Regarding this, заявил Mike Novogratz, CEO of Galaxy Digital.
During discussions with investors following the third-quarter results, the businessman expressed confidence that approval of several ETFs is simply a matter of time. In his view, the instrument would provide not only institutional trust but also a significant inflow of investment into the cryptocurrency industry.
„This ETF gives us all a breather, reviving the system. It brings capital that allows everything else to flourish,“ he emphasised.
Novogratz also warned that approval of the Ethereum ETF could encounter difficulties because of the staking model.
In August, Novogratz said the first spot Bitcoin ETF could receive approval in the United States by around February 2024. A few months later he revised his forecast to the end of the year.
According to analysts at QCP Capital, the decision to launch the instrument will be postponed until January 2024.
Galaxy Digital filed a joint application with Invesco to launch an exchange-traded fund based on digital gold back in July. In October the companies also sought approval for a spot Ethereum ETF.
Earlier, ARK Invest and 21Shares filed the Bitcoin ETF application, later BlackRock joined the race. Subsequently, similar filings with the SEC were received from asset manager WisdomTree, and also Valkyrie Investments and Fidelity Investments.
So far the SEC has not granted any approvals for spot Bitcoin ETFs. The Commission did, however, allow similar futures-based products for the first cryptocurrency from ProShares and Valkyrie Investments.
On October 16 Cointelegraph published a false report that the SEC had allegedly approved BlackRock’s instrument. Against this backdrop, Bitcoin’s price rose above $30,000, but then retraced to around $28,000.
On November 9 the second-largest cryptocurrency broke through the $2,000 level amid news of an application to register a spot Ethereum ETF from BlackRock. The next day Nasdaq confirmed the filing for the iShares Ethereum Trust.
Earlier, the former BitMEX CEO Arthur Hayes warned of a threat in institutional interest in Bitcoin.