Galaxy Digital Holdings CEO Michael Novogratz Expresses Confidence in Spot Bitcoin ETF Approval by Year-End
Michael Novogratz, CEO of Galaxy Digital Holdings, is optimistic about the approval of spot bitcoin exchange-traded funds (ETFs) by the end of 2023.
In a recent interview on CNBC, Novogratz stated, “It’s gonna get approved. We think it will happen this year, in 2023.”
The push for the approval of a spot bitcoin ETF has been intensifying, particularly after Grayscale Investments secured a legal victory in August. Three judges in the U.S. Court of Appeals for the D.C. Circuit ruled that the Securities and Exchange Commission (SEC) needed to re-evaluate its application for a spot bitcoin ETF. While the SEC does not intend to appeal this decision, the next steps remain uncertain.
When asked by a CNBC reporter to provide concrete reasons for his assertion, Novogratz pointed to the recent court ruling, emphasizing, “The SEC lost in court… the judge has said, ‘What are you talking about, SEC? You have a futures ETF and you’re saying you can’t have a cash ETF. That makes intellectually zero sense.’ That puts the SEC on the back foot.”
If Novogratz’s prediction proves accurate, it would be advantageous for his firm, which has collaborated with Invesco on a spot bitcoin ETF application.
Mounting Pressure
In the wake of the court ruling, lawmakers have pressured SEC Chair Gary Gensler to approve a spot Bitcoin ETF. They argue that a regulated spot bitcoin ETF would enhance investor protection by providing more transparent and secure access to bitcoin. Besides Grayscale, major financial institutions like BlackRock and Fidelity are also seeking to offer Bitcoin ETF products to their clients.
“The American public wants this,” Novogratz emphasized. “BlackRock, the world’s largest asset manager, is publicly stating, ‘We’re going to get this done.'”
This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.