Galaxy Digital CEO Mike Novogratz has expressed confidence that the US Securities and Exchange Commission (SEC) will approve a spot Bitcoin exchange-traded fund (ETF) this year.
Galaxy Digital CEO Mike Novogratz has expressed confidence that the US Securities and Exchange Commission (SEC) will approve a spot Bitcoin exchange-traded fund (ETF) this year. Speaking on CNBC's Squawk Box, Novogratz emphasized the importance of a win for SEC Chairman Gary Gensler and claimed that approval is soon.
A key factor is the mounting pressure on SEC Chairman Gary Gensler to approve an ETF. Gensler aims to be seen as pro-innovation and pro-consumer, so granting approval would be a major accomplishment for his legacy. In addition, the SEC was recently dealt a blow when a court ruled against them in a case involving Grayscale's Bitcoin Trust. The verdict criticized the SEC's past denials of Bitcoin ETFs as "arbitrary and capricious." This defeat, along with urging from Congress, has put Gensler in a tough spot.
Approving a spot Bitcoin ETF would help improve the SEC's image as innovation-friendly. It would also satisfy the growing public demand for access to crypto through traditional investment vehicles.
When false rumors spread this week that BlackRock received ETF approval, Bitcoin spiked momentarily to almost $30,000 - evidence of pent-up appetite.
Major financial players like Fidelity have also been actively revising their filings to meet the SEC's specifications. The constructive dialogue suggests the SEC is moving closer to acceptance. With Galaxy Digital partnering with Invesco on an ETF application, Novogratz has an inside look at the process.
While risks and challenges remain, the signals point to a spot Bitcoin ETF being approved later this year. All eyes are on Gensler as he weighs granting public access to this rapidly emerging asset class.
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