Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Bitcoin to surge in 6 months as investors pivot from Grayscale to new ETFs, Galaxy Digital’s Novogratz says

Bitcoin to surge in 6 months as investors pivot from Grayscale to new ETFs, Galaxy Digital’s Novogratz says

Crypto SlateCrypto Slate2024/01/22 13:01
By:Oluwapelumi Adejumo

Observers says only 10% of GBTC outflows are being redirected to the new ETFs.

 

Bitcoin’s price should go “higher in six months” because investors divesting their Grayscale’s Bitcoin Trust (GBTC) holding would switch to other exchange-traded funds (ETFs), according to Galaxy Digital CEO Michael Novogratz .

Novogratz made this statement in response to a bearish outlook presented by BTCdata Corporation’s founding partner, Chris J. Terry, who predicted a short-term downturn for BTC due to substantial selling pressure from GBTC.

According to Terry, the market could witness a $25 billion selling pressure before GBTC is liquidated.

 

Why BTC will go higher

Novogratz countered this view, noting that while investors divest their GBTC holdings, they are likely to reinvest in other ETFs.

Novogratz underlined the accessibility of these new ETFs and emphasized their appeal to a broader demographic, including boomers. He also highlighted the potential for leveraging this Bitcoin exposure up to four or five times.

In his optimistic perspective, the prevailing market unease will subside, leading to a higher Bitcoin valuation within six months.

“While I think people will sell GBTC, I think most will switch into other ETFs – BTCO being my favorite! Let’s not miss the forest through the trees. It’s now gonna be far easier for boomers to buy corn. And you can get 4×5 times leverage on this BTC exposure. This indigestion will end and BTC will be higher in 6 months,” Novogratz concluded .

‘Small minority’ of GBTC outflows are going to new ETFs

However, despite Novogratz’s optimism, industry experts have pointed out that only approximately 30% of the outflows from GBTC are currently directed toward the newly established ETFs.

Bloomberg’s senior ETF analyst, Eric Balchunas, further explained :

“The more we think about it and talk to people, probably only a small minority of the GBTC outflows are likely going to the Nine right now as much of it was FTX and traders who [arbitraged] discount. Also the proportionality of the flows to the size of the firm is almost perfect, indicating flows due to reach/distribution/hustle.”

Nevertheless, Novogratz’s bullish Bitcoin price prediction aligns with sentiments shared by other market observers who believe the market will eventually respond positively to the newly launched spot BTC ETFs.

According to CryptoSlate’s data , BTC is trading at around $40,500, reflecting a 3% decline over the past day.

 
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

2025 TGE Survival Ranking: Who Will Rise to the Top and Who Will Fall? Complete Grading of 30+ New Tokens, AVICI Dominates S+

The article analyzes the TGE performance of multiple blockchain projects, evaluating project performance using three dimensions: current price versus all-time high, time span, and liquidity-to-market cap ratio. Projects are then categorized into five grades: S, A, B, C, and D. Summary generated by Mars AI This summary was generated by the Mars AI model, and the accuracy and completeness of its content are still being iteratively updated.

MarsBit2025/11/28 16:26
2025 TGE Survival Ranking: Who Will Rise to the Top and Who Will Fall? Complete Grading of 30+ New Tokens, AVICI Dominates S+

Mars Finance | "Machi" increases long positions, profits exceed 10 million dollars, whale shorts 1,000 BTC

Russian households have invested 3.7 billion rubles in cryptocurrency derivatives, mainly dominated by a few large players. INTERPOL has listed cryptocurrency fraud as a global threat. Malicious Chrome extensions are stealing Solana funds. The UK has proposed new tax regulations for DeFi. Bitcoin surpasses $91,000. Summary generated by Mars AI. The accuracy and completeness of this summary are still being iteratively updated by the Mars AI model.

MarsBit2025/11/28 16:26
Mars Finance | "Machi" increases long positions, profits exceed 10 million dollars, whale shorts 1,000 BTC

How much is ETH really worth? Hashed provides 10 different valuation methods in one go

After taking a weighted average, the fair price of ETH exceeds $4,700.

ForesightNews 速递2025/11/28 15:05
How much is ETH really worth? Hashed provides 10 different valuation methods in one go

Dragonfly partner: Crypto has fallen into financial cynicism, and those valuing public blockchains with PE ratios have already lost

People tend to overestimate what can happen in two years, but underestimate what can happen in ten years.

深潮2025/11/28 14:53
Dragonfly partner: Crypto has fallen into financial cynicism, and those valuing public blockchains with PE ratios have already lost