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SEC's Approval of Bitcoin ETFs Expected to Boost Crypto Investor Confidence
Mike Novogratz, a prominent voice in the cryptocurrency investment world and founder of Galaxy Digital, has posited that the potential approval of a Bitcoin exchange-traded fund (ETF) would symbolize a validation of Bitcoin by U.S. regulatory bodies. In conversation with Bloomberg TV on July 12, he underlined the significance of numerous ETF proposals currently awaiting validation by the U.S. Securities and Exchange Commission (SEC), noticeable among them being an application from BlackRock, the asset management giant commanding over $10 trillion in assets.
"The submission of ETF applications by credible entities like BlackRock, Invesco, and others is a conspicuous indication that widespread acceptance is on the horizon," Novogratz opined.
Bitcoin ETFs: The Crucial First Step for Hesitant Investors
For many who are apprehensive about entering the cryptocurrency market, the ratification of a Bitcoin ETF could serve as an accessible introductory step into digital currency investment. Novogratz illustrated that a robust framework is already established to support these proposed ETFs. Prospective offerings from Valkyrie, Invesco, VanEck, WisdomTree, Fidelity, as well as a collaboration between ARK Invest and 21Shares, are all queuing in line for regulatory approval.
The Galaxy Digital founder also suggested that several among this group are poised for success in their applications.
SEC's Stance: Not All Cryptos Are Created Equal
Distilling the SEC's stance on cryptocurrency, its Chair, Gary Gensler, previously asserted emphatically that “everything other than Bitcoin” would fall under its surveillance. Other digital currency projects, he reasoned, are essentially securities because profits are expected based on the work of known developers.
Galaxy's ETF: The Wait Continues
Reluctant to make any bold assertions about the expected approval of Galaxy and Invesco’s forthcoming Bitcoin ETF within this calendar year, Novogratz stated, "The SEC has persistently been a tough nut to crack with their strict stance on digital currencies."
"So far, no significant entity has successfully navigated the listing process. As someone who is in the midst of that process, I can tell you – it's been a drawn-out and challenging journey," he revealed without further speculation.
Novogratz's Bitcoin Price Prediction for Year-End
Despite the murkiness surrounding the ETF approval process, Novogratz affirmed his belief that Bitcoin will end the year on a high note, suggesting, “If we breach the peak, we can expect a refreshing upward momentum.”
