Galaxy Digital CEO Mike Novogratz expects the U.S. Securities and Exchange Commission (SEC) to approve the first spot Bitcoin exchange-traded fund (ETF) in the next six months. He bases this experience on his contacts at BlackRock and Invesco.
Novogratz, one of the applicants for a Bitcoin ETF spot, mentioned that BlackRock and Invesco have indicated that approval is a matter of “when” rather than “if.” The latest timeline suggests it could be approved by Feb 2024.
During Galaxy’s Q2 earnings call on Aug. 8, he shared these comments about the company’s financial performance. Specifically, he reported a net loss of $46 million.
Novogratz said that approving a spot Bitcoin ETF would have substantial implications for the crypto industry. It could broaden access and enhance liquidity for investors seeking exposure to Bitcoin without needing to purchase or store it directly.
He also mentioned that once the SEC approves it, there will be intense competition among the spot Bitcoin ETF issuers, including BlackRock, Invesco, and Galaxy.
“The news of both BlackRock filing ETF and, quite frankly, Invesco Plus Galaxy, we’re going to fight like cats and dogs to win market share once it gets approved.”
Grayscale Lawsuit Could Speed Up The Process
Some analysts speculate that the SEC might approve a spot Bitcoin ETF sooner. The outcome of Grayscale’s lawsuit against the regulator could influence this possibility.
Grayscale, the operator of the world’s largest Bitcoin trust, filed a lawsuit against the SEC last year. The lawsuit came after the SEC rejected Grayscale’s application to convert its Grayscale Bitcoin Trust into a spot ETF.
According to analysts, if Grayscale wins its case against the SEC, the regulator may be compelled to approve all or some of the pending spot Bitcoin ETF applications simultaneously. This action would be taken to avoid appearing unfavorable towards cryptocurrencies.
Galaxy Digital president Chris Ferraro expressed a similar view, emphasizing the importance of SEC approval for their filing and others. He believes it is crucial to demonstrate that they support innovation in the cryptocurrency space without hindering its progress.
“I think that’s where the potential ETF approval comes in, saying, hey, you can’t call us anti-crypto; we just approved an ETF. And so we’re hoping that that’s the same for our filing,” said Ferraro.
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“The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.”
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