If Passed, Bitcoin Spot ETF would be SEC’s ‘Seal of Approval,’ Says Mike Novogratz
- Mike Novogratz believes that the listing of a Bitcoin spot ETF will be the SEC’s “seal of approval.”
- He noted that the SEC has been “stubborn and really tough on crypto.”
- As per Novogratz, a change at the heart of the SEC or a change in administration is needed.
- He believes that the filings from BlackRock, ARK Invest, 21Shares, etc. might be approved first.
Mike Novogratz, the CEO of Galaxy Digital, a New York-based digital asset and blockchain investment firm, claims that the approval from the United States Securities and Exchange Commission of a Bitcoin spot exchange-traded fund (ETF) will be equal to a “seal of approval” for Bitcoin from the government of the United States.
It is crucial to note that there are currently five big Bitcoin ETF filings from firms, including the world’s largest asset management company, BlackRock. The other participants who aim to gain the first mover advantage are Valkyrie, Invesco, VanEck, WisdomTree, Fidelity, and a joint fund by ARK Invest and 21Shares.
“This SEC has been really stubborn and really tough on crypto,” Novogratz said. “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 US.”
Many Bitcoin ETFs have been rejected by the SEC, which stated that the filings did not contain enough measures to protect investors. However, exchange operator Cboe refiled all the applications after including a surveillance-sharing agreement with crypto exchange Coinbase in each one of them. As per the filings, the parties are “expecting to enter” an SSA prior to potentially offering the spot ETFs.
In a July 12 interview with Bloomberg TV, Novogratz said that “BlackRock, Invesco, and the group of ETF providers are a real signal that adoption is coming,” while adding that a majority of people are “nervous” about investing in crypto and a spot Bitcoin ETF would be an “easy first step” for investors in the asset class.
Novogratz also believes that out of all the major Bitcoin spot ETFs filed with the SEC, most will end up getting approved since there is a giant infrastructure in place for the same.
“I just think if it happens, it’s the seal of approval from the SEC and the US government,” said Novogratz. “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.”
The Galaxy Digital executive said that his firm’s and Invesco’s filing for a spot Bitcoin ETF remains pending with the SEC. He noted that “no one of significance has gotten through the listing process,” while adding that “it has been a long and frustrating path.”
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
