Michael Novogratz, CEO of Galaxy Digital Holdings, believes in the likelihood of the Bitcoin ETF being approved by the end of this year.
“It will be approved, and we believe it will happen this year, in 2023,” he stated in the interview with CNBC.
Following Grayscale Investment’s legal victory in August of this year, the pressure to approve the spot Bitcoin ETF has exponentially increased. It was ruled that the Securities and Exchange Commission (SEC) must reevaluate its offering. However, the SEC does not plan to appeal the decision, and for now, the future remains uncertain.
If he turns out to be correct in his prediction, this would represent a benefit for Michael’s company. During the CNBC interview, Novogratz presented arguments to support his stance on what will happen with the ETF. According to him, the court has put the SEC in a difficult position by questioning why they have a futures ETF and are unwilling to accept a cash ETF, which, according to Mike, doesn’t make any intellectual sense.
In the meantime, Galaxy Digital Holdings has already submitted an ETF application in partnership with Invesco.
SEC Must Make a Decision Under Pressure
SEC Chairman Gary Gensler is facing pressure from various fronts. In addition to the buzz surrounding Grayscale’s legal victory, other major players such as BlackRock and Fidelity have jumped on board and aim to offer Bitcoin ETF products to their clients.
Some lawmakers have urged Gensler to finally approve the ETF, under the premise that more transparency and security for Bitcoin translates to greater investor safety.
“The American public supports this,” Novogratz stated. “BlackRock, the world’s largest asset manager, has publicly declared, ‘We’re going to make it happen’.”
Beyond the current uncertainty, some believe that the approval of the ETF is already a “done deal.” Analysts at Bloomberg assert this, estimating a 90% probability of acceptance for the new spot ETF before January 10, 2024.
If that were the case, it would lay the foundation for a new era of acceptance and recognition for Bitcoin, providing a simpler and safer way to invest, bypassing many of the complexities faced by someone inexperienced in the world of cryptocurrencies.
