In a recent interview, Michael Novogratzexecutive director of Galaxypredicted a significant boost to bitcoin BTC/USD with the advent of options trading on ETFs. This forecast comes amid ongoing discussions regarding the Federal Reserve's interest rate decisions and their potential impact on Bitcoin prices.
What happened: Novogratz, speaking with CNBC Tuesday highlighted that the next catalyst for Bitcoin will be the introduction of options trading on ETFs. He noted that while the market expected a faster launch, the process has been slower than anticipated. However, he remains optimistic that the introduction of these options will be transformative for Bitcoin.
“The next big shakeup for bitcoin will be when we have options trading in ETFs. The SEC said they will come. “I don’t know if it will be in three weeks or a month,” Novogratz said.
Novogratz highlighted that little by little platforms are beginning to offer these options and this trend is expected to continue. He drew a parallel with MicroStrategy Inc. MSTRwhich offers Bitcoin leverage for retail investors and trades at more than double the value of its Bitcoin holdings, largely due to options trading.
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He noted the evident demand for leveraged cryptocurrency investments, especially among younger investors using platforms such as Robinhood Markets Inc. HOOD.
Why it is important: Bitcoin has recently seen notable price movements. On September 27, Bitcoin surpassed $66,000, marking a 14% gain in two weeks. This increase was driven by positive fund flows into Bitcoin spot ETFs for six consecutive days, with significant contributions from Ark 21Shares ETFs ARKB and BlackRock's ETFs will go.
However, geopolitical tensions have also affected the cryptocurrency market. On Tuesday, Bitcoin plunged to a two-week low of $60,370 following Iran's missile attack on Israel, before recovering slightly. This incident underlines the volatility and sensitivity of the cryptocurrency market to global events.
Price action: According Benzinga ProAt the time of writing, Bitcoin had recovered slightly by 1.41% and was trading at $61,503.80. Meanwhile, in the after-hours market, Microstrategy was down 1.41% while Robinhood was trading 0.76% lower. Among Bitcoin ETFs, ARKB was down 1.26%, while IBIT was down 1.45% around the same time.
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