The Galaxy Digital founder believes approval of a spot Bitcoin ETF would essentially be a United States regulator and government nod for Bitcoin.
The approval of a spot Bitcoin (BTC) exchange-traded fund (ETF) would equate to a “seal of approval” for Bitcoin from the United States government and its securities regulator, says Mike Novogratz.
In a July 12 interview with Bloomberg TV the founder of crypto investment firm Galaxy Digital spoke about the multiple spot Bitcoin ETF filings before the Securities and Exchange Commission (SEC), including one from the $10 trillion asset manager BlackRock.
“What I do think is BlackRock, Invesco [and] the group of ETF providers is a real signal that adoption is coming,” Novogratz said.
He added many are “nervous” about investing in crypto and the approval of a spot Bitcoin ETF would be an “easy first step” for most 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 explained there is a “giant infrastructure” in place for the ETFs. Along with BlackRock, proposed ETFs from Valkyrie, Invesco, VanEck, WisdomTree, Fidelity and a joint fund by ARK Invest and 21Shares are also lined up for approval. Novogratz believes that many of these will likely end up being approved.
“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.”
SEC chair Gary Gensler has previously claimed that “everything other than Bitcoin” falls under his agency’s purview and other crypto projects “are securities" as there are typically known developers and profits are anticipated based on their work.
Related: Don’t be naive — BlackRock’s ETF won’t be bullish for Bitcoin
Novogratz was evasive when asked his thoughts on if Galaxy and Invesco’s spot Bitcoin ETF would be able to list before the end of the year.
“This SEC has been really stubborn and really tough on crypto,” he said.
“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,” he added.
“I think we're probably going to need either a change of heart at the SEC or a change of administration to see real progress in crypto regulation here in the U.S.”
Novogratz predicted the price of Bitcoin will end the year at a high. “If you take out the top we’ll have a nice leg up,” he said.
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