“Mike Novogratz, a renowned investor, anticipates a groundbreaking development in the crypto space as he believes the SEC’s approval of a bitcoin ETF could become a reality in the coming year, potentially revolutionizing the way traditional investors approach digital currencies.”
The crypto market has been eagerly anticipating the approval of a bitcoin exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC). However, according to Mike Novogratz, CEO of Galaxy Investment Partners, that wait may soon be over. Novogratz believes that the SEC could give the green light to a bitcoin ETF as early as this year.
In an interview with CNBC, Novogratz stated that the tone surrounding the approval of a bitcoin ETF has shifted in a positive direction. He mentioned that “all the indications…seem to be heading in the right direction,” based on public filings and comments from various sources. Novogratz also noted that people’s comments have become more constructive, which is seen as a good sign.
The change in tone can be traced back to a U.S. appeals court ruling in late August, which stated that the SEC was wrong in denying crypto investment giant Grayscale’s request to convert its bitcoin trust into an ETF. This ruling was viewed as a significant victory for the crypto community and raised hopes for the approval of other spot bitcoin ETFs.
Although no bitcoin ETF has been approved yet, Novogratz highlighted BlackRock’s application as a positive development. BlackRock, along with Galaxy and other institutional players, filed for a bitcoin ETF following the court ruling. Novogratz sees BlackRock’s move as a bullish signal for the prospects of a bitcoin ETF and the long-term trajectory of bitcoin itself.
Novogratz emphasized that any positive news regarding a bitcoin ETF will likely lead to a higher market. He believes that bitcoin has become a recognized macro asset, which represents a significant psychological shift. Additionally, he pointed out that bitcoin’s price drivers consist of adoption and macro factors. The high interest rate environment, historically unfavorable for bitcoin, has been a factor affecting its price in 2023. However, Novogratz mentioned that if the 2-year yield reaches around 4.50% or 4.75%, bitcoin’s price could surge.
Overall, Novogratz’s optimism regarding the approval of a bitcoin ETF is shared by many in the crypto community. With the positive shift in tone and the engagement of the SEC with various ETF applicants, the hope for a bitcoin ETF approval in the near future remains strong.