The chief executive of crypto investment firm Galaxy Digital says that one new factor could be a huge bullish catalyst for Bitcoin (BTC).
In a new interview on CNBC’s Squawk Box, billionaire Mike Novogratz says options trading for spot market Bitcoin exchange-traded funds (ETFs) could send the flagship crypto soaring.
“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.”
Late last month, the U.S. Securities and Exchange Commission (SEC) approved options on BlackRock’s Bitcoin ETF.
Novogratz believes there is a pent up demand for Bitcoin ETF options trading based on the trading action of MicroStrategy Inc. (MSTR).
“If you look at MicroStrategy as the one place right now you can get leverage on Bitcoin as a retail investor, it trades at more than 2.3 times the value of the Bitcoin it has, mostly because of the options. Often most weeks it’s the single largest option stock in the whole market. And that tells me something, that there’s a whole bunch of young guys on [trading platform] Robinhood that want to play crypto, that want to do it with leverage.”
He also predicts that inflows into the Bitcoin ETFs will continue well into the future.
“I think this will be an ongoing play over the years, not over the months.”
Next up, he says that there is a chance the US will adopt more regulatory clarity for digital assets in about one year, regardless of who wins the November US presidential election. He believes the regulatory clarity would increase traditional finance (TradFi) adoption of crypto and ignite 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…
I think it’s relatively simple what DC has to do. They have to pass a market infrastructure bill that’s not too suffocating… Once there’s clarity, you’ll see a lot more innovation on blockchains. So it’s a market infrastructure bill, a stablecoin bill and it’s a direction to the OCC (Office of the Comptroller of the Currency) to let TradeFi companies hold crypto on their balance sheets.”
Bitcoin is trading for $60,786 at time of writing.
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