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

Oluwapelumi Adejumo

Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.

Liam 'Akiba' Wright

Also known as "Akiba," Liam is a reporter, editor and podcast producer at CyptoRanking. He believes that decentralized technology has the potential to make widespread positive change.

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