A Game Changer in the Offing: BlackRock’s Forecast on Bitcoin Spot ETF Approval

• Galaxy Digital CEO Mike Novogratz cites insiders from BlackRock and Invesco hinting at an imminent Bitcoin spot ETF approval.
• Novogratz’s Galaxy Digital, along with asset manager Invesco, are among the top contenders for this significant ETF launch.

The world of digital currency is abuzz with anticipation, as the race to introduce the United States’ inaugural spot Bitcoin exchange-traded fund (ETF) intensifies. Mike Novogratz, the CEO of Galaxy Digital, has recently stoked the flames of this anticipation. Drawing on insider insights from financial titans BlackRock and Invesco, Novogratz boldly foresees a Bitcoin ETF approval within a window of just four to six months.

According to "contacts" from inside BlackRock and Invesco spot Bitcoin ETF approval a matter of "when, not if" likely in "four to six months" — Galaxy CEO Mike Novogratz on earnings call this morning pic.twitter.com/TIhHC7xnHI

— Eric Balchunas (@EricBalchunas) August 8, 2023

Inside Perspectives Shed Light

During Galaxy’s recent Q2 earnings call on August 8, Novogratz underscored the significance of these potential developments.

“Both our contacts, from the Invesco side and from the BlackRock side, get you to think that this is a question of when, not if,”

he asserted. To provide context, Galaxy Digital had just announced a net loss of $46 million for the quarter.

The Securities and Exchange Commission (SEC) is currently the gatekeeper for this game-changing approval. While the exact timing remains uncertain and under the SEC’s discretion, the overall sentiment, according to Novogratz, leans heavily towards inevitability.

The Market Share Battleground

The possible approval of a Bitcoin ETF isn’t merely a regulatory milestone. It’s set to usher in a fierce competitive arena. Both BlackRock and Invesco, giants in the financial sector, are predicted to go head-to-head, vying for dominance in this emerging market segment. Expressing this impending rivalry, Novogratz vividly depicted,

“We’re going to fight like cats and dogs to win market share there once it gets approved.”

Galaxy Digital president Chris Ferraro weighed in on the conversation, emphasizing the SEC’s potential motivation to approve a Bitcoin ETF. He believes that an ETF approval would symbolize the Commission’s progressive stance, countering any perceptions of them being “obstructionist” in the face of crypto advancements.

Possible Acceleration on the Horizon

However, there’s a twist in the narrative. Some analysts speculate that the approval might come even sooner. The ongoing lawsuit between Grayscale and the SEC plays a pivotal role in this speculation. Grayscale had previously faced rejection from the SEC in its attempt to convert its Grayscale Bitcoin Trust into a spot ETF. If the SEC were to lose this case, it might pave the way for expedited approvals for numerous Bitcoin ETF applicants, reshaping the trajectory of the crypto landscape.