Spot Bitcoin ETF Approval

Mike Novogratz asserts that approving a spot Bitcoin exchange-traded fund (ETF) would be equivalent to a “seal of approval” from the United States government and its securities regulator.

In an interview with Bloomberg TV on July 12, the founder of Galaxy Digital, a cryptocurrency investment firm, discussed the multiple spot Bitcoin ETF filings with the Securities and Exchange Commission (SEC), including one from the $10 trillion asset manager BlackRock.

Novogratz stated, “BlackRock, Invesco, and the group of ETF providers indicate that adoption is imminent.”

He added that many are “nervous” about investing in cryptocurrencies and that approving a spot Bitcoin ETF would be an “easy first step” for most investors to begin investing in the asset.

“I just think if it happens it’s the seal of approval from the SEC and the U.S. government.”

Novogratz explained that ETFs are supported by a “huge infrastructure.”

In addition to BlackRock, ETFs proposed by Valkyrie, Invesco, VanEck, WisdomTree, Fidelity, ARK Invest, and 21Shares are in line for approval. Novogratz believes that a significant number of these will likely be approved.

“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.”

Gary Gensler, the chairman of the Securities and Exchange Commission, has previously stated that “everything other than Bitcoin” falls under his agency’s purview and that other crypto projects are “securities” because their developers are typically well-known. Profits are anticipated based on their work.

Novogratz evaded whether Galaxy and Invesco’s spot Bitcoin ETF could be listed before the end of the year.

“This SEC has been extremely obstinate and harsh on crypto,” he said.

“No significant individual has made it through the listing process. We are in the midst of this process, which has been a long and frustrating journey. I’ll leave it there,” he continued.

“I think we’re probably going to need either a change of heart at the SEC or a change of administration to see real progress in crypto regulation here in the U.S.”

Novogratz predicted that Bitcoin’s price would peak at the end of the year. “If you remove the top, we’ll have a great advantage,” he said.