Spot Bitcoin ETF Approval: A Gateway To Mainstream Adoption, Says Novogratz

In a recent interview with Bloomberg TV, Mike Novogratz, the founder of crypto investment firm Galaxy Digital, expressed his belief that the approval of a spot Bitcoin exchange-traded fund (ETF) would carry significant weight and serve as a “seal of approval” from the US government and its securities regulator, the SEC. 

Novogratz highlighted the increasing number of spot Bitcoin ETF filings, including a notable one from BlackRock, a $10 trillion asset manager. He emphasized that the involvement of BlackRock and other major ETF providers signals the forthcoming adoption of BTC.

Moreover, he acknowledged that many potential investors are still apprehensive about cryptocurrencies. However, approving a spot Bitcoin ETF would provide a relatively simple and accessible entry point for them to invest in this digital asset. Novogratz believes the SEC’s approval of these ETFs would solidify Bitcoin’s credibility and legitimacy.

The proposed spot Bitcoin ETFs from various entities, such as Valkyrie, Invesco, VanEck, WisdomTree, Fidelity, and a joint fund by ARK Invest and 21Shares, are in the queue for approval. Novogratz expressed confidence that regulatory authorities would eventually approve most of these ETFs, given the existing infrastructure and the desire to provide broader access to Bitcoin investments.

Novogratz Expects Bitcoin To Reach New High

While the SEC has been cautious and rigorous in its approach to cryptocurrencies, Novogratz hinted at potential challenges, stating that no significant player has successfully navigated the listing process yet. He believes that true progress in crypto regulation in the United States may require either a change of heart at the SEC or a change of administration.

Regarding the timeline for the approval of Galaxy Digital and Invesco’s spot Bitcoin ETF, Novogratz was evasive, citing the SEC’s stubbornness and tough stance on crypto. He implied that the listing process has been arduous and frustrating, leaving the outcome uncertain.

He concluded by sharing his optimistic outlook for BTC’s price, predicting that it will reach new highs by the end of the year, especially if it breaks through previous records.

Furthermore, other cryptocurrency experts, including Gabor Gurbacs, are convinced that U.S. regulators’ potential approval of a spot Bitcoin ETF would trigger another bullish rally and introduce BTC to individuals and businesses in emerging markets who often lack access to traditional banking services. 

Some big financial institutions in Developed Markets want to offer Bitcoin funds. That's great, but the most important adoption vector is individuals and businesses in Emerging Markets (many unbanked) who do need Bitcoin. Just some perspective that's worth remembering.

— Gabor Gurbacs (@gaborgurbacs) July 12, 2023

Gurbacs emphasized the importance of adoption beyond developed markets and the significance of BTC for unbanked populations.

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