Galaxy Digital CEO Mike Novogratz believes Binance has satisfied regulators and users after its $4.3 billion settlement with United States authorities.
Bitcoin ETFs will drive institutional adoption in 2024 — Galaxy Digital’s Mike Novogratz
Galaxy Digital founder and CEO Mike Novogratz says approving a Bitcoin spot ETF is not “a matter of if but when,” which will drive institutional investment in the sector.
Galaxy Digital and Invesco Bitcoin Spot ETF Join BlackRock On The DTCC
In a recent development, another proposed Spot Bitcoin ETF has been listed on the Depository Trust and Clearing Corporation’s (DTCC) website, becoming the second proposed Spot Bitcoin ETF to appear on the corporation’s website.
BTCO Joins IBTC On DTCC Website
The Invesco Galaxy Bitcoin ETF under the ticker ‘BTCO’ recently appeared on the DTCC website, joining BlackRock’s spot Bitcoin ETF, which goes under the ticker ‘IBTC’ as uncertainty around a possible approval of these funds continues to heighten.
Many had speculated an approval was imminent when BlackRock’s IBTC was earlier listed. However, the optimism has sort of cooled off following a recent revelation by a spokesperson for the financial services company. The representative clarified that the listing of these ETFs was simply “Standard Practice” and that it doesn’t indicate any potential approval by the SEC.
An ETF expert had also weighed in and stated that DTCC’s listing didn’t mean anything in the grand scheme of things regarding a possible approval of Bitcoin ETFs by the United States Securities and Exchange Commission (SEC). Going by this, the DTCC listing only suggests that these asset managers are preparing just in case they get approved by the SEC.
Such preparations also include asset managers BlackRock and VanEck recently revealing their plans to begin seeding for their respective funds. While such a move doesn’t guarantee that the SEC is likely to approve these funds anytime soon, it, however, shows the optimism of these firms that their Spot Bitcoin ETF will launch sooner or later.
Valkyrie Joins The Spot Bitcoin ETF Amendment Train
In a post shared on his X (formerly Twitter) platform, Bloomberg analyst James Seyffart noted that the asset management firm Valkyrie had joined the “prospectus amendment train” with the latest filing of their revised Spot Bitcoin ETF prospectus. Valkyrie joins the likes of ARK Invest, BlackRock, Fidelity, and Bitwise, who have also filed amendments to their prospectus.
Seyffart happens to be one of those who believe that these amendments could mean something. ARK Invest was the first asset manager to amend its prospectus, which led Seyffart and fellow Bloomberg analyst Eric Balchunas to predict that the US Securities and Exchange Commission (SEC) could approve a fund as early as next year.
Meanwhile, it is worth mentioning that the SEC has so far not said anything regarding Grayscale’s application despite the Commission opting not to file an appeal. But that could change soon as ETF enthusiast and prominent financial lawyer Scott Johnsson said that the Commission is set to have a closed meeting on November 2; its first since the Grayscale deadline expired, and one of the agenda for the meeting includes resolving litigation claims.
Bitcoin Is Up 100% This Year. It’s Not Just Because of Spot BTC ETF Hype
As BTC has gained over 100% this year, most observers tied its recent strength to a looming approval of a spot BTC ETF. But its increasingly constrained supply, underinvested market participants and bitcoin’s rejuvenated shine as a safe haven from spiraling debt levels, banking crises and geopolitical turmoil may also have played a role.
Galaxy predicts 74% Bitcoin price increase first year after ETF launch
Currently, a 74% increase takes Bitcoin to over $59,000 and that doesn’t factor in “second-order effects,” says Galaxy Digital.
Bitcoin Price’s Next Move Up Will Be Extremely Explosive: Galaxy
The Bitcoin market dynamics have recently taken an interesting turn, suggests Alex Thorn, Head of Firmwide Research at Galaxy. According to his recent thread on X, the options market makers in BTC are currently operating in a position that could significantly amplify any upward movement in its price.
“Options market makers in Bitcoin are increasingly short gamma as BTC spot price moves up. […] This should amplify the explosiveness of any short-term upward move in the near term,” Thorn notes.
This implies that as the spot price of Bitcoin rises, these market makers have to buy back more of the cryptocurrency to maintain their positions, a phenomenon that could potentially amplify price surges.
The Greatest Show On Earth: Bitcoin
Moreover, he highlighted that data from Amber indicates that dealers are increasingly moving into a short gamma position, especially when the BTC price is above $28.5k. In more explicit terms, Thorn explains, “At $32.5k, market makers need to buy $20 million of delta for every subsequent 1% move higher.” Such positioning suggests that market makers might have to make substantial purchases of Bitcoin as the spot price continues to ascend.
However, it’s not just upward movements that are impacted. Thorn sheds light on the flip side of the coin as well. “Dealers are long gamma in the $26,750-28,250 range. When you’re long gamma & spot declines, you also have to buy back spot to stay delta neutral,” he comments. This means that any minor downward adjustment in price might find resistance as options dealers make necessary purchases to realign their positions.
For bullish investors, these dynamics present an attractive landscape. Thorn elucidates, “This is a great setup for bulls because if spot moves moderately higher, short gamma covering could make it rip much higher pretty quickly, but if it moves lower, long gamma covering could provide some support and limit near-term downside.”
Highlighting potential catalysts that might set the Bitcoin spot price in motion, Thorn pointed to the growing anticipation surrounding Bitcoin ETF approvals. Most recently, renowned personalities and institutions such as Cathie Wood, Paul Grewal, JP Morgan, and several analysts from Bloomberg Intelligence have expressed positive sentiments on the odds for approval.
Eric Balchunas and James Seyffart of Bloomberg predict that the odds of a spot Bitcoin ETF are 75% by the end of this year and 95% by the end of 2024. Additionally, Thorn mentions the recent surge in Bitcoin’s price above $31,000, suggesting it surpassed last month’s highs following the fake news of an ETF approval.
Beyond market sentiments and speculations, fundamental supply, and liquidity dynamics also play a role. Thorn mentions, “Bitcoin’s currently constrained supply and liquidity could also serve to amplify upward moves.” Notably, exchange balances of Bitcoin have plummeted to levels not seen since 2018.
Simultaneously, smaller entities are accumulating Bitcoin, while larger holders, often termed “whales,” appear to be reducing their positions. He underscores the strength of the Bitcoin community with a note on hodlers: “70% of supply has not transacted in 1+ years, 30% in 5+ years… ATHs both.”
With all these dynamics at play, Thorn aptly sums up the current state of the Bitcoin market: “The next several months will be very interesting — Bitcoin is the greatest show on earth.”
At press time, BTC traded at $30,676.
Galaxy’s Head of Mining Amanda Fabiano Departed to Start Consulting Company
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Galaxy Digital Eyes European Expansion With New Regional CEO
Mike Novogratz’s firm has appointed Leon Marshall, its existing global head of sales, as its first European CEO.
FTX files motion for Galaxy Digital to manage recovered crypto holdings
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ChatGPT-Based Search Function Goes Live on Blockchain Encyclopedia IQ.wiki
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Cathie Wood and Mike Novogratz Are Both Bullish on Spot Bitcoin ETF Approvals
Ark Invest CEO Cathie Wood and Galaxy Digital CEO Mike Novogratz are both optimistic about the imminent approval of a spot bitcoin ETF.
BlackRock CEO Larry Fink Is The Best Thing To Happen To Bitcoin, Mike Novogratz Says
BlackRock officially announced its entrance into Bitcoin earlier this year by filing for a Spot Bitcoin ETF with the United States Securities and Exchange Commission (SEC). Although the regulator is yet to accept the filing, CEO Larry Fink has also made some supportive comments, comparing BTC to digital gold.
In light of these events, Galaxy Digital CEO Mike Novogratz has come forward to share his opinions on BlackRock CEO Larry Fink and how he affects the digital asset.
BlackRock CEO’s Pivoting Sentiment Toward Bitcoin
Galaxy Digital CEO Mike Novogratz has stated that BlackRock’s CEO Larry Fink’s change of heart is the best thing to happen to Bitcoin.
“I think the most important thing that happened this year in Bitcoin is Larry Fink,” Novogratz mentioned during an interview on Bloomberg TV with David Rubenstein.
Novogratz believes Fink’s acceptance of Bitcoin highlights a shifting sentiment towards Bitcoin and other digital currencies worldwide.
According to him, “180 million people around the world, without a gun to their head, take their hard-earned savings and store it in this community of people that run this technology, you know, called bitcoin.”
He further opined that Fink’s change of heart, alongside the increasing adoption of cryptocurrencies, could help Bitcoin surpass its all-time high of $69,000 recorded in 2021.
Blackrock’s CEO Larry Fink was long known to be a skeptic of cryptocurrencies as he once went as far as tagging BTC an “index of money laundering.”
“Bitcoin just shows you how much demand for money laundering there is in the world,” Fink stated in 2017.
However, there has been a change of heart from the CEO as earlier in June, BlackRock filed an application to the SEC to establish a Bitcoin spot ETF, a move that saw some other institutions file a similar application.
In fact, in a show of support for cryptocurrencies, Fink stated that crypto, especially bitcoin could “revolutionize finance.” During an interview with Fox Business, he stated: “We do believe that if we can create more tokenization of assets and securities – that’s what bitcoin is – it could revolutionize finance.”
Regulatory Environment Far From Certain
Novogratz also noted Ripple’s recent victory over the SEC, with a judge ruling that the XRP token isn’t a security when sold on secondary exchanges. The Galaxy Digital CEO believes the court’s decision highlights the fact that regulators are still not familiar with the crypto space, and regulations from these regulators “are nowhere close to clear.”
The United States Securities and Exchange Commission has, so far, continued to label many cryptocurrencies as “securities” and filed separate lawsuits against different crypto exchanges and firms for allowing the trade of “unregistered securities.”
However, if the recent ruling is anything to go by, it is obvious that the regulators are mistaken, and there is a need for the US Congress to enact crypto-related laws for stakeholders (including regulators) to gain more clarity on how to navigate the industry regulatory-wise.
Larry Fink Got ‘Orange-Pilled’, Says Galaxy Digital’s Mike Novogratz: Bloomberg
Galaxy Digital CEO Mike Novogratz said Fink is “the most important thing that happened this year in bitcoin.”
Crypto investors cool on Bitcoin funds, turning to Ether and XRP
Bitcoin-related funds saw outflows of $13 million over the past week, reversing five weeks of bullish inflows, according to Coinshares analyst James Butterfill.
Crypto investors cool on Bitcoin funds, turning to Ether and XRP
Bitcoin-related funds saw outflows of $13 million over the past week, reversing five weeks of bullish inflows, according to Coinshares analyst James Butterfill.
US ‘dominates’ crypto startup funding in Q2: Report
US-based crypto startups attracted 45% of all VC funding invested in the industry, followed by the United Kingdom claiming 7.7% of capital investment and Singapore with 5.7%.
Bitcoin ETF would be the ‘seal of approval’ from SEC: Mike Novogratz
The Galaxy Digital founder believes approval of a spot Bitcoin ETF would essentially be a United States regulator and government nod for Bitcoin.
Invesco Reapplies for Bitcoin ETF, Advocates for More Crypto Investment Products
Invesco first filed for a Bitcoin ETF in the fall of 2021, but has since re-applied in light of BlackRock’s application.
BlackRock’s Bitcoin ETF ‘is the best thing to happen’ to BTC, or is it?
Galaxy Digital CEO Mike Novogratz was among those over the moon with the news, others warn it could be the start of a major institutional takeover.
BitGo’s Suit Against Galaxy Digital Over Canceled $1.2B Purchase Dismissed by Delaware Judge
Crypto custodian BitGo had agreed to a sale to Galaxy Digital in May 2021, but Galaxy pulled out of the deal last August amid the industry’s sustained bear market.