The CEO and founder of Galaxy Digital Mike Novogratz makes a bold prediction, saying that the SEC will approve a spot Bitcoin exchange-traded fund this year.Â
Galaxy Digital CEO and founder Mike Novogratz is optimistic that the United States Securities and Exchange Commission (SEC) will approve a spot bitcoin exchange-traded fund (ETF) before the end of the year.
“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,” Novogratz was quoted as saying during an interview on CNBC Market Alert.
"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," says @novogratz on #crypto. "There's a tremendous amount of pressure to do something that is rational. The American public wants this." pic.twitter.com/ozY3gOiSyi
— Squawk Box (@SquawkCNBC) October 18, 2023
Grayscale Victory Over SEC Would Be the Game Changer
It bears mentioning that the SEC has repeatedly denied multiple requests to launch a spot Bitcoin ETF in the US. The SEC’s continued denial prompted crypto asset manager Grayscale Investments to sue the regulator.
Grayscale sued the SEC after the regulator denied its application to convert the Grayscale Bitcoin Trust (GBTC) into a spot BTC fund.
Interestingly, Grayscale won the lawsuit, as the court ordered the SEC to review its decision to reject the crypto asset manager’s application. Per multiple sources, the SEC stated that it would not appeal the court’s decision.
Reacting, Novogratz said the SEC’s recent defeat against Grayscale would be the game changer. He noted that the court’s decision’ puts the SEC on the back foot,’ adding that the commission’s chair, Gary Gensler, is eagerly looking for a win.
Per Novogratz, the SEC is currently under immense pressure to do something rational, as the American public wants a spot Bitcoin ETF.
Ongoing Dialogue Going in the Right Direction
Notably, the quest to launch a spot Bitcoin fund has gained momentum in recent times. The industry is hoping that the SEC will approve one soon following the involvement of top financial institutions, including BlackRock, Wisdom Tree, Fidelity Investments, Ark Invest, and Invesco.
Citing sources at Invesco, Novogratz said that ongoing dialogue with the SEC for a spot BTC fund is heading in the right direction.
It is not the first time Novogratz has predicted that the SEC will approve a spot bitcoin fund soon. In August, the prominent American investor disclosed that his sources at BlackRock and Invesco see the SEC approving the fund in the next four to six months.
Novogratz Reacts to Rumors of SEC Approving BlackRock’s Application
Meanwhile, Novogratz also reacted to the recent rumor of the SEC approving BlackRock’s application. Recall that Cointelegraph, a crypto news outlet, reported on X that the SEC had approved BlackRock’s application to launch the iShares BTC ETF.
The news caused the BTC price to spike over 10%, as other cryptocurrencies followed suit. However, the rally was short-lived after BlackRock refuted the news.
Commenting on the development, Novogratz said the incident shows that the market will rally at any positive news.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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