The potential approval of a spot Bitcoin exchange-traded fund (ETF) by the United States government and its securities regulator would serve as a symbolic endorsement of Bitcoin, according to Mike Novogratz, the founder of crypto investment firm Galaxy Digital. In a recent interview with Bloomberg TV, Novogratz discussed the various spot Bitcoin ETF filings currently under review by the Securities and Exchange Commission (SEC), including one from asset manager BlackRock, which manages $10 trillion worth of assets.
Novogratz stated that the involvement of industry giants like BlackRock and Invesco in the ETF filings is a strong signal that wider adoption of Bitcoin is on the horizon. He explained that many potential investors are still hesitant about entering the crypto market, and the approval of a spot Bitcoin ETF would provide them with an “easy first step” to start investing in the asset. Novogratz believes that if the SEC approves a spot Bitcoin ETF, it would be seen as a “seal of approval” from the US government, further bolstering confidence among investors.
Furthermore, Novogratz highlighted the existing infrastructure for ETFs, emphasizing that multiple firms, including Valkyrie, Invesco, VanEck, WisdomTree, Fidelity, and a joint fund by ARK Invest and 21Shares, have filed applications for spot Bitcoin ETFs. He expressed optimism that many of these applications will be approved, stating, “The SEC is not going to approve one, so you’re going to have these giant sales forces out there giving access to people that didn’t have access before.”
However, Novogratz acknowledged the challenges posed by the current SEC attitude towards cryptocurrencies. SEC chair Gary Gensler has previously asserted that all cryptocurrencies, except for Bitcoin, fall under the agency’s jurisdiction and are considered securities. This stance has caused frustration in the crypto industry, as it implies greater regulatory scrutiny and oversight.
When asked whether Galaxy and Invesco’s spot Bitcoin ETF would be listed before the end of the year, Novogratz evaded a direct response, citing the SEC’s stubborn and tough stance on crypto. He suggested that real progress in crypto regulation in the US would require either a change of heart at the SEC or a change of administration.
Despite these regulatory challenges, Novogratz remained optimistic about the future of Bitcoin. He predicted that the price of Bitcoin would reach new highs by the end of the year, provided it surpasses its previous peak. Novogratz’s positive outlook on Bitcoin reflects his belief in the continued growth and maturation of the crypto market.
In conclusion, the potential approval of a spot Bitcoin ETF by the US government and the SEC signifies a significant step towards wider adoption of Bitcoin. Novogratz’s observations about the involvement of major firms in the ETF filings and the existing infrastructure for ETFs indicate a growing interest and acceptance of Bitcoin. However, regulatory hurdles and the SEC’s cautious approach to cryptocurrencies continue to pose challenges for the industry. Nonetheless, Novogratz maintains a positive outlook on the future of Bitcoin, anticipating further price increases and a broader recognition of its value.