The approval of a spot Bitcoin exchange-traded fund (ETF) in the United States would be seen as a significant endorsement for Bitcoin, according to Mike Novogratz, the founder of Galaxy Digital. Speaking in an interview with Bloomberg TV, Novogratz highlighted the filings for multiple spot Bitcoin ETFs before the Securities and Exchange Commission (SEC), including one from BlackRock, a renowned $10 trillion asset manager.
Novogratz believes that the interest shown by major ETF providers like BlackRock and Invesco indicates the imminent arrival of mainstream adoption. He stated that many potential investors are hesitant to invest in cryptocurrencies, but the approval of a spot Bitcoin ETF would serve as an “easy first step” for them to enter the asset class. Novogratz further emphasized that the approval from the SEC and the US government would essentially be a seal of approval for Bitcoin itself.
The proposed ETFs awaiting approval include those from Valkyrie, Invesco, VanEck, WisdomTree, Fidelity, and a joint fund by ARK Invest and 21Shares. Novogratz expressed confidence that several of these ETFs will eventually receive regulatory approval. The presence of these established financial institutions offering Bitcoin investment opportunities would provide access to a broader range of investors who were previously unable to participate.
However, Novogratz acknowledged the challenges associated with obtaining approval from the SEC, citing the agency’s cautious approach toward cryptocurrencies. He suggested that a change of heart within the SEC or a change in administration may be necessary to witness substantial progress in crypto regulation within the United States.
Regarding the price outlook for Bitcoin, Novogratz predicted a bullish trajectory for the cryptocurrency, envisioning a significant price increase if it breaks through its previous all-time high. While he remained evasive about the specific timeline for Galaxy Digital and Invesco’s spot Bitcoin ETF listings, Novogratz expressed frustration with the lengthy and arduous process involved.
In conclusion, the potential approval of a Bitcoin ETF by the SEC would represent a significant milestone in the cryptocurrency industry. It would not only provide a seal of approval from the US government but also open doors to wider adoption by allowing more investors to access Bitcoin through regulated investment vehicles. Nevertheless, challenges persist, and the future of ETF approvals remains uncertain, necessitating potential changes in regulatory attitudes or administration to accelerate the progress of crypto regulation in the United States.