Mike Novogratz, CEO of crypto investment firm Galaxy Digital, Bitcoin 
$60,521 It brought to the fore a new factor that could be an important bullish catalyst for .
ETF Option Approval
In his statement on CNBC’s Squawk Box program, Novogratz stated that the option approval of exchange-traded funds (ETFs) for Bitcoin could increase the price of Bitcoin. Following the approval of the Spot BTC ETF, option approvals for these ETFs were also given by the SEC. Unlike the forward BTC ETF approval, opening the option trading option of ETFs allows investors to buy or sell for a certain period.
Last month, the U.S. Securities and Exchange Commission (SEC) approved options for BlackRock’s Bitcoin ETF. Novogratz thinks that this product will attract great interest for BTC, which has high volatility, and may naturally increase its price. Although options bring more liquidity, they may disrupt the usual cycle structure in cryptocurrencies. Trends that were previously shaped by investor demand in the spot market now last much shorter and large capital pursuing speculative trade is forced to follow the spot price.
MicroStrategy Example
Novogratz believes MicroStrategy’s trading density indicates pent-up demand for Bitcoin ETF options trading.
“MicroStrategy stands out as the only place where retail investors can gain leveraged access to Bitcoin. Thanks to options, the value increases by 2.3 times depending on the performance of Bitcoin and this shows the desire of young investors to play with crypto.”
Additionally, Novogratz predicts that net inflows into Bitcoin ETFs will continue to increase in the future.
“This will be a process that will take years, not months.”
Novogratz noted that the US will provide greater regulatory clarity for digital assets over the next year, which will increase crypto adoption by traditional finance. He thinks this regulatory clarity will also fuel blockchain innovation, allowing crypto markets to grow further.
Bitcoin is trading at $60,276 at the time of writing.
The impact of regulatory developments on crypto markets can be an important indicator for investors. The approval of ETF options is considered a strong signal for Bitcoin to appreciate.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
