Bitcoin ETFs Will See More Than One Winner Emerge, Mike Novogratz Says

Amid the intrigue of the emergence of 11 spot Bitcoin ETFs, Mike Novogratz believes the market will see more than one winner.

There are different conversations surrounding the spot Bitcoin ETFs approved and the longevity of these products in relation to adoption remains top on the horizon.

Speaking in an interview with CNBC, Mike Novogratz, the co-founder and CEO of Galaxy Digital, believes there will be no single standout winner in the Bitcoin ETF market as all issuers offer distinctive value propositions.

“So I think in the long run you are going to have two or three that actually win. I don’t think it will be one winner, I think it will be a couple of winners,’ says @Novogratz on a #Bitcoin ETF. “All ETFs are not created equal.” pic.twitter.com/Py6DOLl1cy

— Squawk Box (@SquawkCNBC) January 11, 2024

After months of maintaining optimism about the potential spot Bitcoin ETF approval, Mike Novogratz’s Galaxy Digital also had its offering, in conjunction with Invesco, approved by the SEC. The product trades under the ticker symbol “BTCO.”

The Mike Novogratz Perspective

The comment from Novogratz came when he was asked by Andrew Sorkin what he thinks would make BTCO stand out from the offerings of the firm’s other competitors.

While the longer-term outlook is different, the Galaxy Digital boss noted the volatility that will rock the respective ETFs in their first days of trading.

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He highlighted what to expect in the short term including the incidence of “Tracking Error,” a measure that can show whether the ETF in question tracks the asset in the right manner.

Drawing reference to its ETF product in Canada, Novogratz noted that it moved from second-ranked to first-place as it maintained a very low tracking error of around 1%. This compares to the closest competitor whose tracking error stands at 11%.

Novogratz named some of the factors that can help define long-term winners including execution, liquidity, and hidden fees that prove all assets are not created equal.

Spot Bitcoin ETF: Day 1 Trading Performance

The spot Bitcoin ETF trading debut ended with impressive numbers as the total trades surpassed 703,000 with volume jumping to a historic high of $4.11 billion.

Invesco also had mildly impressive opening figures with a total of 10,908 trades and a volume of $44.6 million per data shared by Bloomberg’s Senior ETF Analyst, Eric Balchunas.

Galaxy Digital is an established player in the crypto ecosystem and despite lagging behind top competitors in the Bitcoin ETF space, Novogratz appears confident in the long-term prospect of the product.