Spot Bitcoin ETF Approval In 2023: Novogratz’s Bold Prophecy Amidst SEC’s Shifting Stance

Oct. 21, 2023
BY Mishal
Spot Bitcoin ETF Approval In 2023: Novogratz’s Bold Prophecy Amidst SEC’s Shifting Stance

In a bold prediction, Mike Novogratz, the CEO and founder of Galaxy Digital, anticipates that the United States Securities and Exchange Commission (SEC) will approve a spot Bitcoin exchange-traded fund (ETF) within the year. Novogratz’s optimism stems from the changing tide in the SEC’s stance towards crypto ETFs.

During an interview on CNBC Market Alert, Novogratz expressed his belief, stating, “We believe a Bitcoin ETF will receive approval in 2023.” All the indications of dealing seem to be heading in the right direction.” The SEC’s history of denying multiple requests for spot Bitcoin ETFs in the United States gives significance to this statement.

Grayscale Investments, a prominent crypto asset manager, recently challenged the SEC’s rejection of its application to convert the Grayscale Bitcoin Trust (GBTC) into a spot BTC fund. The court ruled in favor of Grayscale, compelling the SEC to revisit its decision.

Following this development, Novogratz noted that the SEC is under pressure to make a rational decision as the American public eagerly awaits the approval of a spot Bitcoin ETF.

The quest for a spot Bitcoin fund has gained momentum, with major financial institutions like BlackRock, Wisdom Tree, Fidelity Investments, Ark Invest, and Invesco entering the fray. Novogratz revealed that ongoing discussions with the SEC regarding a spot BTC fund have been progressing positively, emphasizing that the SEC’s recent setback against Grayscale has put the commission on the back foot.

However, this isn’t the first time Novogratz has made such predictions. In August, he revealed that sources at BlackRock and Invesco indicated a potential SEC approval within the next four to six months.

Market Reacts To Fake Bitcoin ETF News

Meanwhile, the crypto market experienced a notable spike when rumors circulated about the SEC approving BlackRock’s application for an iShares BTC ETF. BlackRock swiftly refuted the news, highlighting how the market reacted to any positive developments regarding Bitcoin ETFs; however, the price surge was short-lived.

Analysts believe that the recent price surge in response to the false ETF news is a precursor to what may occur upon a decisive verdict on actual spot ETF applications. K33 Research analysts pointed out that Bitcoin’s price increased by 7% in just eight minutes following the fake news, underscoring the market’s sensitivity to such announcements. They anticipate a potentially even larger market reaction upon actual approval.

Source: K33 Research

Alex Krüger, co-founder of investment research firm Asgard Markets, noted that the approval of a Bitcoin ETF is not fully priced into the market and predicted a substantial price surge when it eventually occurs.


Experienced in the realm of cryptocurrencies and fueled by a deep passion for blockchain technology, I am a skilled crypto writer. My expertise lies in offering comprehensive insights into various aspects of the crypto space, encompassing cryptocurrencies, decentralized finance, and the cutting-edge developments shaping the world of digital assets.