Crypto bull Mike Novogratz sees a war between these 3 firms as bitcoin ETFs spark a race for new customers
Reuters/Rick Wilking
- Crypto enthusiast Mike Novogratz sees a bitcoin ETF war heating up between Invesco, BlackRock, and Fidelity.
- He told CNBC there will likely be two to three winners in the new crypto space.
- Novogratz, whose firm partnered with Invesco to launch its own ETF, noted that "all ETFs are not created equal."
The regulatory approved of 11 bitcoin spot ETFs this week set Wall Street on a chase for customers, with two to three management firms likely to win out in the long run, crypto enthusiast Mike Novogratz said.
Though he didn't spell out exactly who the champions may end up being, the Galaxy Digital CEO did highlight who the key players will likely be.
"I think there's gonna be a war between Invesco, Fidelity, and BlackRock, those three," he told CNBC on Thursday.
Even before the Securities and Exchange Commission approved the ETFs late Wednesday, issuers were already racing to lower their fees to stay ahead of one another.
But Novogratz, whose firm is partnered with Invesco to launch its own fund, noted that "all ETFs are not created equal."
"So what goes into that? It's your execution. It's your liquidity. It's the hidden fees," he added. "We've done this before: we've done it in Germany, we've done it in Canada, we've done it in Brazil. We know how to run a cash-credit ETF."
Novogratz also said he foresees further appreciation for bitcoin, emphasizing that its supply will only continue to tighten with many of those who already own the token highly unlikely to sell.
Others have similarly pointed out crypto's unique asset-holding culture. And events such as the upcoming halving cycle will accelerate a bitcoin supply crunch, pressuring prices higher.
Meanwhile, Novogratz cautioned that some predictions for bitcoin to soar in price in the near term could actually signal trouble in the broader economy. That's as some in the cryptosphere consider bitcoin to be an emerging safe haven asset.
"Governments around the world are pushing too much debt. They're putting too much money in, that's why bitcoin's going up," he said.