The outspoken CEO of Galaxy Digital, Mike Novogratz, believes that the recent spate of applications for spot bitcoin exchange-traded funds (ETF) from high-profile asset managers if approved, would represent a “seal of approval” for crypto from the U.S. government and its top securities watchdog. This means the potential approvals would signal wider adoption of cryptocurrencies. He points to $9 trillion asset manager BlackRock as a signal of this coming adoption.
Spot ETF Approval Is The Long-Awaited “Seal of Approval” For BTC
The greenlight of spot bitcoin ETFs would basically be a nod for crypto from the United States government and its securities regulator.
During a July 12 interview with Bloomberg, Galaxy Digital’s Mike Novogratz highlighted the potential of ETFs that track the spot market value of bitcoin (as opposed to existing futures-based ETFs) in driving widespread cryptocurrency adoption. “What I do think is BlackRock, Invesco [and] the group of ETF providers is a real signal that adoption is coming,” Novogratz posited.
The moment finance giant BlackRock filed to introduce a spot bitcoin ETF in the U.S., industry observers believed that the world’s largest asset manager had a high chance of approval than the many rejected predecessors due to its nearly flawless ETF application record.
In Novogratz’s opinion, many investors are nervous about dipping their toes into the crypto market. The okaying of a spot bitcoin ETF may be the first step for most to begin pouring their money into crypto.
“I just think if it happens, it’s the seal of approval from the SEC and the U.S. government.”
The crypto bull indicated that the SEC was not only going to approve BlackRock’s proposed ETF but also the filings from other applicants, including Valkyrie, Fidelity, Invesco, VanEck, WisdomTree, and ARK Invest. “So you’re going to have these giant sales forces out there giving access to people that didn’t have access before,” Novogratz observed.
However, he warned that the U.S.’s regulatory environment is still frustrating, with the SEC maintaining a “really tough” stance on crypto assets.
Novogratz Expects BTC To End The Year Higher
Mike Novogratz also noted that the world is currently in the early stages of accepting Bitcoin as a macro asset.
Nonetheless, he still thinks the flagship cryptocurrency’s ongoing consolidation phase, around $28,000 and $32,000, will likely be the harbinger of a significant bull rally. “If you take out the top, we’ll have a nice leg up,” Novogratz predicted, noting that he expects bitcoin to trade higher by the close of 2023.
This potential meteoric upsurge, as per Novogratz, will happen when the U.S. Federal Reserve pivots and flinches in response to the increased interest and appetite for BTC.
