According to Blockworks, Galaxy Digital CEO Mike Novogratz believes that the approval of a bitcoin ETF is just the beginning of accelerated crypto adoption, especially as the US debt level rises and the Bitcoin halving approaches. Despite regulatory challenges, Novogratz highlighted the US's national debt of over $34 trillion, which has increased by around $1 trillion in recent 100-day periods. He stated that until the US and other countries get their finances in order, the story for bitcoin and other digital assets will continue to grow.
Bitcoin, which has a finite supply, has historically acted as a hedge against currency debasement. Its price rose above $71,000 on Tuesday morning. Novogratz added that the crypto story is powerful right now, and with the bitcoin ETF, they have opened up the $80 trillion baby boomer giant bulk of wealth in the United States. Galaxy launched a spot bitcoin ETF with Invesco in January, and the Invesco Galaxy Bitcoin ETF (BTCO) was one of 10 such US products to launch at that time. The segment has so far attracted about $11.3 billion of net inflows.
Easier access to bitcoin via the ETF is set to coincide with the bitcoin halving next month, when per-block mining rewards will drop from 6.25 BTC to 3.125 BTC. Novogratz noted that this event creates a good supply-demand imbalance. While the Securities and Exchange Commission's approval of bitcoin ETFs legitimized the asset for a new segment of investors, the rest of the crypto space is still facing regulatory challenges. The SEC is set to rule on spot ether ETFs in May, but many industry watchers are bearish on the possibility of those getting cleared to trade. Novogratz said that until there is a change in SEC leadership, the firm can be hopeful but not optimistic about getting cleared to become a US public company.