Galaxy Digital's CEO claims ETF applications show "a real sign that <Bitcoin> adoption is coming."
Mike Novogratz asserts that the United States government and its securities regulator extending their endorsement to a spot Bitcoin exchange-traded fund (ETF) would be a significant "seal of approval" for Bitcoin (BTC).
Novogratz, the founder of a cryptocurrency investment firm Galaxy Digital, shared his views on the potential implications of a spot Bitcoin ETF approval in a July 12th interview with Bloomberg TV.
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Galaxy Digital CEO discussed the multiple applications for spot Bitcoin ETFs currently under the scrutiny of the Securities and Exchange Commission (SEC), including a submission from BlackRock, a colossal asset manager overseeing $10 trillion.
Novogratz signaled the interest of massive players like BlackRock and Invesco, along with a cohort of ETF providers, as an undeniable sign of incoming mainstream adoption. He voiced:
What I do think is BlackRock, Invesco <and> the group of ETF providers is a real signal that adoption is coming.
The Galaxy Digital founder underscored that many potential investors are apprehensive about venturing into the crypto sphere. He pointed out that a spot Bitcoin ETF, given its approval, would offer an "easy first step" for most to dip their toes in crypto investing. He emphatically stated:
I just think if it happens, it's the seal of approval from the SEC and the US government.
Novogratz acknowledged the extensive infrastructure in place to accommodate these ETFs. Several proposed ETFs from industry heavyweights, including Invesco, Valkyrie, VanEck, WisdomTree, Fidelity, as well as a collaborative effort by ARK Invest and 21Shares, are awaiting approval. Novogratz anticipates a favorable outcome for many of these filings.
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 suggested a possible change of heart at the SEC or a shift in the administration for substantial progress in US crypto regulation. Despite the regulatory uncertainties, Novogratz predicted a year-end high for Bitcoin, adding:
If you take out the top, we'll have a nice leg up.
The looming prospect of a Bitcoin ETF approval carries substantial implications for the crypto landscape, signaling the potential for enhanced investor accessibility and increased regulatory validation.
