(Bloomberg) -- Michael Novogratz predicts that Bitcoin is poised to reach its former peak a year from now, as anticipation builds over the likelihood that the US Securities and Exchange Commission will approve the first American exchange-traded fund to directly hold Bitcoin.
“Could we go to old highs by this time next year?” Novogratz, the founder and chief executive officer of Galaxy Digital Holdings Ltd., said during on interview on Bloomberg TV on Wednesday. “Of course.”
Bitcoin reached a high of almost $69,000 in November 2021, before retreating 64% last year amid a series of crypto industry scandals and bankruptcies. It has more than doubled this year and currently trades at around $38,000.
The SEC is expected to approve a spot Bitcoin ETF by Jan. 10, according to Bloomberg Intelligence analysts.
Once the Bitcoin ETF starts trading, Novogratz said that billions of dollars should flow into the ETF space within the first year, if not more. He pointed out that the uncertainty of the upcoming election year will also propel digital assets.
“Prices are set on the margin, so that’s all new money,” Novogratz said. “We will see a pretty successful shift of psychology when the government says you are allowed to buy Bitcoin.”
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Novogratz has long touted anticipation over institutional adoption of cryptocurrencies through the SEC’s approval of a Bitcoin ETF. During Galaxy’s third-quarter earnings conference call in November, Novogratz predicted that the Federal Reserve would opt to cut interest rates in the first quarter of next year, further supporting the industry’s growth over the next 18 months.
Novogratz previously said he expects the SEC will approve a Bitcoin ETF by the end of 2023. Galaxy has partnered with Invesco on plans to launch such a product.
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