Novogratz Predicts Options Trading on ETFs Will Propel Bitcoin to New Heights

In a recent chat, Michael Novogratz, the CEO of Galaxy, shared some exciting news about Bitcoin (BTC/USD). He believes that options trading on ETFs could give Bitcoin a significant boost.

During his interview with CNBC, Novogratz pointed out that the introduction of options trading will be the next big thing for Bitcoin. He mentioned that while many expected this to happen sooner, the rollout has been slower than anticipated. Still, he remains hopeful about the potential impact of these options.

“The next big jolt to Bitcoin is going to be when we have options that trade on the ETFs. The SEC said they are coming. I don’t know if it’s in three weeks or a month,” he said.

He also noted that platforms are starting to offer these options, and this trend is likely to grow. He compared it to MicroStrategy Inc. (MSTR), which offers leverage on Bitcoin for retail investors. Interestingly, MicroStrategy trades at more than double the value of its Bitcoin holdings, largely due to options trading.

Novogratz highlighted the strong demand for leveraged crypto investments, especially among younger investors using platforms like Robinhood Markets Inc. (HOOD).

Bitcoin has been on quite a ride lately. On September 27, it soared past $66,000, marking a 14% increase over just two weeks. This surge was driven by positive fund flows into Bitcoin spot ETFs for six consecutive days, with significant contributions from Ark 21Shares’ ETF (ARKB) and BlackRock’s ETF (IBIT).

However, it's important to note that geopolitical tensions have also influenced the crypto market. On Tuesday, Bitcoin dropped to a two-week low of $60,370 after Iran's missile attack on Israel, but it managed to recover slightly afterward. This situation shows just how sensitive the cryptocurrency market can be to global events.

As for the current price action, according to Benzinga Pro, Bitcoin had slightly recovered by 1.41%, trading at $61,503.80. In after-hours trading, MicroStrategy was down by 1.41%, while Robinhood was trading 0.76% lower. Among Bitcoin ETFs, ARKB was down by 1.26%, and IBIT was down by 1.45% at that time.