Galaxy Digital Holdings CEO Michael Novogratz is confident spot bitcoin exchange-traded funds will be approved by the end of this year.
"It's gonna get approved," Novogratz said during an interview on CNBC. "We think it happens this year, in 2023."
The pressure to approve a spot bitcoin ETF has been mounting, especially after Grayscale Investments secured a court win in August, with three judges in the U.S. Court of Appeals for the D.C. Circuit ruling that the Securities and Exchange Commission had to re-review its bid for a spot bitcoin ETF. The SEC doesn't plan on appealing that ruling, but what happens next has yet to crystalize.
Pressed by CNBC's reporter to give tangible reasons why his argument makes sense and isn't just wishful thinking, Novogratz cited the recent court decision. "The SEC lost in court ... the judge has said, 'What are you talking about SEC? You have a futures ETF and you're saying you can't have a cash ETF. That makes intellectually zero sense,'" he said. "That puts SEC on the back foot."
If Novogratz proves right, it would certainly benefit his firm, which has partnered with Invesco on a spot bitcoin ETF application.
The pressure mounts
Last month, lawmakers pressed SEC Chair Gary Gensler to allow for a spot Bitcoin ETF following the ruling, arguing a regulated spot bitcoin ETF would increase investor protection by making access to bitcoin more transparent and safer. Besides Grayscale, top financial firms including BlackRock and Fidelity are also seeking to offer a bitcoin ETF product to their clients.
"The American public wants this," Novogratz said. "BlackRock, the largest asset manager in the world is out publicly saying 'We're going to get this done."
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