The approval of a Bitcoin spot (BTC) exchange-traded fund (ETF) would amount to a “seal of approval” for Bitcoin from the US government and its securities regulator, it says mike novogratz.
On a July 12 interview With Bloomberg TV, the founder of crypto investment firm Galaxy Digital discussed the multiple Spot Bitcoin ETFs filings with the Securities and Exchange Commission (SEC), including one of the $10 trillion asset manager BlackRock.
“What I do think is BlackRock, Invesco [and] the ETF provider pool is a real sign that adoption is coming,” Novogratz said.
He added that many are “nervous” about investing in cryptocurrencies and that 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 does happen, it's the seal of approval from the SEC and the US government."
Novogratz explained that there is a "giant infrastructure" for ETFs. Along with BlackRock, the proposed ETFs valkyrieInvesco, VanEck, WisdomTree, Fidelity and a joint fund of ARK Invest and 21Shares are also lined up for approval. Novogratz believes that many of these will likely end up being approved.
"The SEC isn't going to approve one, so you're going to have these giant sales forces giving access to people who didn't have access before."
SEC chairman Gary Gensler has previously claimed that "everything but Bitcoin" falls within the purview of his agency and other crypto projects "are securities" as there are usually known developers and earnings are anticipated based on their work.
Related: Don't be naive: BlackRock ETF will not be bullish on Bitcoin
Novogratz was evasive when asked what he thought about whether the Galaxy and Invesco Spot Bitcoin ETF could be listed before the end of the year.
“This SEC has been really stubborn and very tough on cryptocurrency,” he said.
“No one of importance has passed the listing process. We are in that process and it has been a long and frustrating road. I'll leave it at that,” she added.
“I think we will probably need a change of heart at the SEC or a change of administration to see any real progress in regulating cryptocurrency here in the US.”
Novogratz predicted that the Bitcoin price will end the year on a high. “If you take the top off, we'll have a good lead,” he said.
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