- Mike Novogratz predicts SEC’s approval for a spot Bitcoin ETF by the close of 2023.
- Grayscale’s court triumph over SEC is deemed a pivotal moment in the ETF approval journey.
Galaxy Digital’s Leader Projects Optimism for Bitcoin ETF
Mike Novogratz, the pioneering CEO and founder of Galaxy Digital, has expressed a fervent belief in the impending approval of a spot Bitcoin exchange-traded fund (ETF) by the United States Securities and Exchange Commission (SEC) within this year. Reflecting on the matter during his CNBC Market Alert interview, Novogratz noted,
“All the indications of dealing seem to be heading in the right direction.”
@novogratz: 'We think a #Bitcoin ETF will be approved this year in 2023. All the indications of dealing seem to be heading in the right direction. There's a tremendous amount of pressure to do something that is rational. The American public wants this!' 🚀🚀🚀#BitcoinETF #BTC pic.twitter.com/E6DFdu2RjD
— Collin Brown (@CollinBrownXRP) October 18, 2023
Grayscale’s Triumph: A Potential Turning Point
For those out of the loop, the SEC has traditionally been hesitant, consistently rejecting multiple spot Bitcoin ETF proposals in the US. This resistance from the regulatory body compelled the crypto asset management giant, Grayscale Investments, to take legal action against the SEC. The bone of contention? SEC’s refusal to permit Grayscale to transition its Bitcoin Trust (GBTC) into a spot BTC fund.
Grayscale emerged victorious from this legal battle. The court’s mandate directed the SEC to reconsider its decision, sidelining Grayscale’s application. Subsequent to this development, the SEC intimated its decision not to contest the court’s ruling further.
Gleaning insights from this episode, Novogratz sees this as a watershed moment, hinting at a changing dynamic between crypto entities and the SEC. He suggests that this legal setback has somewhat cornered the SEC, particularly its chair, Gary Gensler, compelling the commission to reconsider its stance.
Rising Momentum in the ETF Arena
The momentum behind the approval of a spot Bitcoin fund is palpable, with the crypto community’s aspirations soaring. The push for approval has been fortified with heavyweight financial players entering the fray. Esteemed entities like BlackRock, Wisdom Tree, Fidelity Investments, Ark Invest, and Invesco have all expressed interest in this venture.
Novogratz, citing insights from Invesco, confirms that the dialogue with the SEC is taking a favorable turn. Notably, this isn’t his first prophetic stance on the matter. Earlier in August, he referenced sources from BlackRock and Invesco, suggesting a probable SEC nod within the subsequent four to six months.
Furthermore, Novogratz recently weighed in on the buzz around the SEC’s purported approval of BlackRock’s ETF application. While the news led to a brief BTC price surge, BlackRock soon debunked the claims. Novogratz’s take on this event? It’s evident proof of the market’s sensitivity and propensity to rally at even a whiff of positive developments.