Bitcoin Could Surge with ETF Options Trading, Says Galaxy Digital CEO

Mike Novogratz, CEO of Galaxy Digital, has pointed to a new potential catalyst for Bitcoin’s price growth—options trading linked to spot market Bitcoin exchange-traded funds (ETFs). In a recent interview with CNBC, Novogratz suggested that such trading could significantly drive Bitcoin’s value upward. While the U.S. Securities and Exchange Commission (SEC) has signaled that these options are in development, the exact timeline for their availability remains uncertain.

Novogratz emphasized the strong demand for Bitcoin ETF options trading and cited the trading behavior of MicroStrategy Inc. as a prime example. He explained that MicroStrategy’s stock trades at more than 2.3 times the value of the Bitcoin it holds, largely due to the popularity of options trading tied to its stock. He also noted an increasing interest among younger investors, particularly on platforms like Robinhood, where leveraged crypto investments are gaining popularity.

Bitcoin ETF Inflows and Regulatory Clarity

Novogratz anticipates that inflows into Bitcoin ETFs will continue to grow over the coming years, driven by increasing interest and institutional adoption. He also predicted that the U.S. will establish clearer regulatory guidelines for digital assets within the next year, regardless of the outcome of the upcoming presidential election. According to him, this regulatory clarity will encourage greater adoption of cryptocurrency within traditional finance, helping to integrate blockchain technology and promote innovation in the sector.

Furthermore, Novogratz stressed the importance of Congress passing legislation that defines market infrastructure, establishes stablecoin regulations, and provides clear guidance for traditional financial institutions managing crypto assets. This, he believes, is crucial for fostering long-term growth and stability within the cryptocurrency market.

In conclusion, Novogratz’s outlook highlights the potential for ETF options trading to act as a major catalyst for Bitcoin’s price, alongside regulatory changes that could unlock further adoption and innovation within the broader crypto ecosystem.