The Crypto Market Awaits Green Light for Bitcoin ETF
The crypto market has been eagerly awaiting the approval of a bitcoin exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC). According to Mike Novogratz, CEO of Galaxy Investment Partners, this approval could come as soon as this year.
In an interview with AsumeTech, Novogratz expressed optimism for crypto investors, stating that the tone regarding bitcoin ETFs has shifted in a positive direction. He mentioned that his own company has partnered with Invesco and has their application for a spot bitcoin ETF in the SEC’s queue. “It’s going to get approved,” Novogratz confidently stated.
Novogratz highlighted that the tone changed in late August when a U.S. appeals court ruled that the SEC was wrong in denying Grayscale permission to convert its bitcoin trust into an ETF. This ruling was seen as a victory for the crypto community and has raised hopes for the approval of other spot bitcoin ETFs.
Recently, there was a false report claiming that BlackRock’s proposed spot bitcoin ETF had been approved by the SEC, causing a temporary spike in bitcoin and Coinbase shares. While no bitcoin ETF has been approved yet, Novogratz sees BlackRock’s involvement as a positive sign, indicating that “the dialogue with the SEC is all heading in the right direction.”
Ark Invest CEO Cathie Wood also expressed optimism about the SEC’s engagement with them for a bitcoin ETF application, noting that the SEC’s questions show a change in behavior. Novogratz believes that any positive news regarding bitcoin ETFs will lead to a higher market.
Novogratz emphasized bitcoin’s two vectors: adoption and macro. He explained that throughout 2023, the price drivers for bitcoin have ranged from industry-specific catalysts to macro factors, such as the high interest rate environment. Despite concerns about a slowing economy, Novogratz believes that if the 2-year yield reaches 4.75% or 4.50%, bitcoin will see a significant increase in value.