In a recent interview with Bloomberg TV on July 12, Mike Novogratz, the founder of crypto investment firm Galaxy Digital, expressed his belief that the approval of a spot Bitcoin exchange-traded fund (ETF) would symbolize a significant endorsement of Bitcoin by the United States government and its securities regulator, the Securities and Exchange Commission (SEC).
Novogratz highlighted the numerous spot Bitcoin ETF filings currently under consideration by the SEC, notably mentioning the submission from BlackRock, a renowned asset manager with assets totaling $10 trillion.
According to Novogratz, the involvement of industry leaders like BlackRock, as well as other ETF providers such as Valkyrie, Invesco, VanEck, WisdomTree, Fidelity, and a joint fund by ARK Invest and 21Shares, serves as a strong signal of impending adoption.
The crypto mogul emphasized that many potential investors remain hesitant about entering the cryptocurrency market. He believes that the approval of a spot Bitcoin ETF would act as a straightforward initial step for most individuals to start investing in the asset.
"I just think if it happens, it's the seal of approval from the SEC and the U.S. government," Novogratz stated.
Novogratz further elaborated on the substantial infrastructure already in place for ETFs. Considering the presence of major players like BlackRock, he expressed his confidence that many of the proposed ETFs would likely receive approval.
"The SEC is not going to approve one, so you're going to have these giant sales forces out there giving access to people that didn't have access before," Novogratz added.
SEC Chair Gary Gensler has previously asserted that all cryptocurrencies, except for Bitcoin, fall within the purview of his agency. Gensler categorizes most other crypto projects as securities due to identifiable developers and anticipated profits based on their efforts.
When questioned about the likelihood of Galaxy Digital and Invesco's spot Bitcoin ETF being listed before year-end, Novogratz evaded a direct response. He acknowledged that the current SEC has been steadfast and stringent in its approach to crypto.
"No one of significance has gotten through the listing process. We are in that process, and it has been a long and frustrating path. I'll leave it at that," Novogratz said.
Novogratz concluded by stating that real progress in crypto regulation within the United States would likely require either a change of heart at the SEC or a change of administration.
In terms of Bitcoin's price outlook, Novogratz predicted a positive trajectory, foreseeing a high by the end of the year. "If you take out the top, we'll have a nice leg up," he expressed optimistically.
As the crypto industry eagerly awaits the SEC's decision on spot Bitcoin ETFs, the potential approval of these investment vehicles could mark a significant milestone in mainstream adoption and regulatory acceptance of Bitcoin in the United States.
