This week’s approval of 11 bitcoin spot ETFs by regulators has ignited a race for customers on Wall Street, according to crypto enthusiast Mike Novogratz. The CEO of Galaxy Digital believes that in the long run, two to three management firms will emerge victorious, singling out Invesco, Fidelity, and BlackRock as the likely contenders.
Speaking with CNBC on Thursday, Novogratz emphasized that despite issuers already lowering their fees even before the Securities and Exchange Commission’s Wednesday approval, not all ETFs are equal. He pointed to factors such as execution, liquidity, and hidden fees, noting his confidence in navigating these complexities based on past experiences launching similar funds in Germany, Canada, and Brazil, particularly in running a cash-credit ETF.
Novogratz expressed optimism about the future appreciation of bitcoin, underscoring the ongoing tightening of its supply, as existing holders are unlikely to sell. Acknowledging the unique asset-holding culture in the crypto space, he highlighted events like the upcoming halving cycle, which is expected to intensify a bitcoin supply shortage and push prices higher.
However, Novogratz cautioned against overly optimistic short-term predictions for bitcoin’s price, suggesting that they could signal broader economic troubles. He attributed bitcoin’s current rise to governments worldwide injecting excessive money into the system, viewing the cryptocurrency as an emerging safe haven asset amid increasing global debt.
