In a recent interview, Michael Novogratz, CEO of Galaxy, predicted a significant boost for Bitcoin BTC/USD with the advent of options trading on ETFs. This forecast comes amidst ongoing discussions about the Federal Reserve’s interest rate decisions and their potential impact on Bitcoin prices.
What Happened: Novogratz, speaking to CNBC on Tuesday, emphasized that the next catalyst for Bitcoin will be the introduction of options trading on ETFs. He noted that while the market had expected a quicker rollout, the process has been slower than anticipated. However, he remains optimistic that the introduction of these options will be transformative for Bitcoin.
“The next big jolt to bitcoin is going to be when we have options that trade on the ETFs. The SEC said they are coming. I don’t know if it’s in three weeks or a month,” Novogratz said.
Novogratz highlighted that platforms are gradually beginning to offer these options, and this trend is expected to continue. He drew a parallel to MicroStrategy Inc. MSTR, which offers leverage on Bitcoin for retail investors and trades at more than twice the value of its Bitcoin holdings, largely due to options trading.
He pointed out the evident demand for leveraged crypto investments, especially among younger investors using platforms like Robinhood Markets Inc. HOOD.
Why It Matters: Bitcoin has recently experienced notable price movements. On Sep. 27, Bitcoin surged past $66,000, marking a 14% gain over two weeks. This rise was driven by positive fund flows into Bitcoin spot ETFs for six consecutive days, with significant contributions from Ark 21Shares’ ETF ARKB and BlackRock’s ETF IBIT.
However, geopolitical tensions have also impacted the crypto market. On Tuesday, Bitcoin plummeted to a two-week low of $60,370 following Iran’s missile attack on Israel, before recovering slightly. This incident underscores the volatility and sensitivity of the cryptocurrency market to global events.
Price Action: According to Benzinga Pro, at the time of writing, Bitcoin had slightly recovered by 1.41% and was trading at $61,503.80. Meanwhile, in the after-hours market, Microstrategy was down by 1.41% while Robinhood was trading 0.76% lower. Among the Bitcoin ETFs, ARKB was down by 1.26% while IBIT was 1.45% lower around the same time.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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