Mike Novogratz Identifies Key Catalyst to Spark Bitcoin’s (BTC) Next Surge

Mike Novogratz, the billionaire and CEO of Galaxy Digital, has expressed optimism about the future of Bitcoin and identified a key impending development that may raise its price. In a recent interview with CNBC’s Squawk Box, Novogratz emphasized that the cryptocurrency’s next big driver may be options trading on Bitcoin exchange-traded funds (ETFs).

Novogratz is confident that the launch of options trading for Bitcoin ETFs will unlock tremendous demand. He noted, “The next big jolt to Bitcoin is going to be when we have options that trade on the ETFs. The SEC said they’re coming. I don’t know if it’s in three weeks or a month.”

The U.S. Securities and Exchange Commission (SEC) recently gave the green light to options on BlackRock’s Bitcoin ETF, which could pave the way for increased activity in the crypto market. Novogratz believes this development will mirror the performance of MicroStrategy Inc. (MSTR), a company that currently allows retail investors to gain leveraged exposure to Bitcoin. He pointed out that MicroStrategy’s stock often trades at 2.3 times the value of its Bitcoin holdings due to the demand for its options.

Long-Term Impact of Bitcoin ETFs and Regulatory Clarity

In addition to the excitement surrounding Bitcoin ETF options, Novogratz foresees long-term inflows into Bitcoin ETFs. He emphasized, “I think this will be an ongoing play over the years, not over the months.”

Looking ahead, Novogratz also predicts that the U.S. will move toward greater regulatory clarity for digital assets within a year, regardless of the outcome of the 2024 presidential election. This clarity, he argues, will encourage more traditional financial institutions to adopt crypto and spur blockchain innovation. “I do think, though, going forward, both the House and the Senate and that whoever’s in the executive side is going to be pro-crypto.”

He believes that with a well-structured market infrastructure bill, a stablecoin bill, and direction to the Office of the Comptroller of the Currency (OCC) to allow traditional finance (TradFi) companies to hold crypto, the sector will see significant growth.

As of writing, Bitcoin is currently trading at $60,708.