Galaxy Digital CEO believes that SEC will approve spot Bitcoin ETFs in "four to six months."
Mike Novogratz, the chief executive of Galaxy Digital, provides an optimistic timeline for the potential approval of the United States' first spot Bitcoin (BTC) exchange-traded fund (ETF).
During Galaxy's recent Q2 earnings call on August 8th, which unveiled a net loss of $46 million, Novogratz made waves by suggesting the US could witness its first Bitcoin ETF approval sooner than anticipated.
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Based on the intelligence from contacts within BlackRock and Invesco, Novogratz asserted:
It's a big, big deal. <...> It's a question of when, not if — that the outside window is probably six months. This is probably <...> four to six months <...> that the SEC is going to approve a Bitcoin ETF.
Galaxy Digital, in alliance with Invesco, a mammoth asset manager with $1.5 trillion in assets and the fourth-largest ETF issuer in the US, is one of the top players aiming for a spot Bitcoin ETF. Having reapplied spot Bitcoin ETF in June, Novogratz refrained from committing to any timeframe for the ETF's green light by the Securities and Exchange Commission (SEC).
Yet, the CEO envisions a fierce competition post-approval, stating:
The news of both BlackRock filing ETF and quite frankly, Invesco Plus Galaxy, we're going to fight like cats and dogs to win market share there once it gets approved.
Supporting Novogratz's viewpoint, Galaxy Digital's president Chris Ferraro indicated that the SEC might lean toward an ETF approval to steer clear of an "obstructionist" image. Ferraro stated:
I think that's where the potential ETF approval comes in saying, hey, you can't call us anti-crypto, we just approved an ETF.
Simultaneously, the crypto market closely watches Grayscale's ongoing legal tussle with the SEC. After they applied to transform Grayscale Bitcoin Trust into a spot ETF was denied, Grayscale responded with a lawsuit. Analysts speculate that if Grayscale wins the legal battle, the regulatory body might be more inclined to approve multiple Bitcoin ETF applications.
With insider information suggesting probable approval and the ongoing Grayscale lawsuit casting its shadow, the crypto industry is keenly awaiting the SEC's move regarding Bitcoin ETFs. As the world of cryptocurrency continues to evolve and mature, the potential approval could be a significant milestone, signaling a broader acceptance and institutional interest.
