Bitcoin ETF would represent the SEC's "seal of approval": Mike Novogratz
July 13, 2023 6:57 AM
The founder of Galaxy Digital thinks an OK from U.S. regulators and the government on a spot Bitcoin ETF would be huge for the cryptocurrency.
According to Mike Novogratz, the establishment of a spot Bitcoin exchange-traded fund (ETF) would be a "seal of approval" for Bitcoin from the US government and securities regulator.
The founder of the crypto investing firm Galaxy Digital discussed the many spot Bitcoin ETF applications with the Securities and Exchange Commission (SEC) on July 12 during an interview→ with Bloomberg TV. Among the applicants was the $10 trillion asset management BlackRock.
"What I do believe is that BlackRock, Invesco, and the group of ETF providers are a true signal that adoption is on the way," Novogratz said.
Many people are "nervous" about investing in cryptocurrency, he says, and the establishment of a spot Bitcoin ETF would be an "easy first step" for most people to begin trading in the commodity.
"I just feel that if it occurs, it will be the official seal of acceptance from the Securities and Exchange Commission (SEC) and the U.S. government."
Novogratz explained that the ETFs have a "giant infrastructure" in place. In addition to BlackRock→, pending ETF applications have been submitted by Valkyrie, Invesco, VanEck, WisdomTree, Fidelity, and a partnership between ARK Invest and 21Shares. Many of these, according to Novogratz, will most likely get approval.
"The Securities and Exchange Commission (SEC) isn't going to endorse one, so you'll have these huge sales forces available which allow people who had no access before to get in on the action."
SEC head Gary Gensler has previously stated that "everything other than Bitcoin" is under the ambit of his agency and that other crypto projects "are securities" because there are normally known creators and earnings are expected based on their efforts.
Novogratz dodged the question of whether the spot Bitcoin ETF being planned by Galaxy and Invesco could be likely to list this year.
"This SEC has proven to be quite stubborn and harsh on crypto," he said.
"No single person of note has made it past the listing process." We're in the middle of it, and it's been an exhausting and frustrating road. "I'll leave it there," he added.
"I believe we'll need either a change of mentality at the SEC or a switch in power to see substantial improvements in regulating digital currencies here in the United States."
Novogratz has projected that Bitcoin will reach a new high before the end of the year. "When you take away the peak, we'll have quite a good leg up," he added.