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.
