Galaxy Digital Founder: Bitcoin ETF Will Become SEC’s “Stamp of Approval”

Galaxy Digital Founder predicts Bitcoin ETF will become SEC's "stamp of approval".

Author: JESSE COGHLAN, COINTELEGRAPH; Translation: 松雪, Blocking

Mike Novogratz said that the approval of a spot Bitcoin exchange-traded fund (ETF) would be the equivalent of a “stamp of approval” from the US government and its securities regulator for Bitcoin.

On July 12, the founder of cryptocurrency investment firm Galaxy Digital discussed multiple spot Bitcoin ETF filings submitted to the US Securities and Exchange Commission (SEC), including one from $10 trillion assets manager BlackRock, in an interview with Bloomberg.

Novogratz said, “I really do think that BlackRock, State Street, and the ETF issuers are a real signal that the age of using Bitcoin is coming.”

He added that many people are “nervous” about investing in cryptocurrencies, and the approval of a spot Bitcoin ETF would be the “simple first step” for most people to start investing in the asset.

“I just think that if it happens, that’s the SEC and the US government’s stamp of approval.”

Novogratz explained that ETFs have “enormous infrastructure.” In addition to BlackRock, Valkyrie, Invesco, VanEck, WisdomTree, Fidelity, and joint funds from ARK Invest and 21Shares have proposed ETFs waiting for approval. Novogratz believes that many of these ETFs may ultimately be approved.

“The SEC isn’t going to approve this plan, so these large sales forces are going to provide access to Bitcoin to people who previously couldn’t get access,” he said.

SEC Chairman Gary Gensler previously claimed that “everything other than Bitcoin” falls under the jurisdiction of his agency, and other crypto projects “are all securities” because they typically have a known developer and are forecast to be profitable based on their work.

When asked about the idea of Galaxy and Invesco’s spot Bitcoin ETFs being able to go public before the end of the year, Novogratz was noncommittal.

“This SEC is very stubborn and tough on cryptocurrencies,” he said.

“No one important is going to get it across the finish line. We’re in the process, it’s a long and frustrating road. I’ll leave it at that,” he added.

“I think we may need the SEC to change its mind or change the government to see real progress in US cryptocurrency regulation,” Novogratz predicted that the price of Bitcoin would reach its high at the end of the year. “If you take the top off, we’ll have a nice run,” he said.

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