Bitcoin ETFs will drive institutional adoption in 2024

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<p>Galaxy Digital founder Mike Novogratz has told investors that 2024 will be headlined by institutional adoption of cryptocurrencies driven by the pending approval of Bitcoin (BTC) spot exchange-traded funds (ETFs).</p>
<p>During Galaxy Digital’s third-quarter earnings call on Nov. 9, Novogratz highlighted the firm’s belief that approving several ETFs “is now not a matter of if but when.&#8221; The fund manager filed its spot Bitcoin and Ethereum (ETH) ETF applications with the U.S. Securities and Exchange Commission (SEC) in partnership with Invesco in Q3 2023.</p>
<p><strong><em>Related: Bitcoin briefly tops $37K amid market optimism for pending spot ETF approvals</em></strong></p>
<p>Investors&#8217; sentiment has turned bullish in Nov. 2023, with prominent ETF research analysts predicting the SEC will begin approving 12 major Bitcoin spot ETF applications by Jan. 2024.</p>
<p>“2024 literally is going to be a year of institutional adoption, primarily first through the Bitcoin ETF, which will be followed by an Ethereum ETF,” Novogratz said during the Q3 earnings call.</p>
<blockquote><p>“As institutions get more comfortable, if the government gives its seal of approval that Bitcoin is a thing, you are going to see the rest of allocators starting to look at things outside of that. And so money will flow into the space.”</p></blockquote>
<p>Novogratz adds that institutional investment could come to a head in 2025 as investments “in tokenization and wallets” ramp up. The Galaxy Digital CEO added that a key focus for the U.S. landscape should be ensuring that dollar-backed stablecoins remain a central cog in the wider cryptocurrency ecosystem.</p>
<blockquote><p>“We are going to continue to be dollar dominant. We better have a dollar-backed Stablecoin that reflects our values and is taken up around the world.”</p></blockquote>
<p>According to Novogratz, a Bitcoin ETF will bring a measure of institutional confidence and a significant amount of funding to the cryptocurrency space. </p>
<p>“This ETF is giving us all breathing space, putting life in the system. That brings in capital that allows the rest of the stuff to flourish. But I think if you look at the crypto long-term plan, it’s on target,” he added.</p>
<p>The potential influence of an Ethereum spot ETF was also brought up during the investor call. Galaxy Digital’s CEO said its possible approval might not be as well received as a Bitcoin ETF, given that Ethereum’s validating model is based on a staking model and staking yields.</p>
<p><strong><em>Related: CME overtakes Binance to grab largest share of Bitcoin futures open interest</em></strong></p>
<p>“Unless they can figure out an ETF that actually passes through the staking rewards, it will be kind of a subpar product from just owning Ethereum with someone like us and having it staked,” Novogratz explained.</p>
<p>He added that the technical difference would be significant if investors are looking at yields between 4% to 7%, depending on the method of staking. Utility remains an important factor, with Novogratz stresses that different blockchains and their native tokens need to “serve a purpose” and have “stuff built on them” to sustain long-term value.</p>
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<br /><a href="https://cointelegraph.com/news/bitcoin-etf-will-drive-adoption-in-2024-mike-novogratz">Source link </a></p><p>The post <a href="https://forextraderhub.com/bitcoin-etfs-will-drive-institutional-adoption-in-2024.html">Bitcoin ETFs will drive institutional adoption in 2024</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>