FameEX Hot Topics | SEC's Nod for Bitcoin Spot ETF Possible in Less Than Six Months, Mike Novogratz Believes

Mike Novogratz, the CEO of Galaxy Digital, holds a positive outlook regarding the potential approval of a spot bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC) in the next four to six months. Novogratz's optimism stems from insights obtained from industry contacts at Blackrock and Invesco, both of which have submitted applications for bitcoin ETFs to the SEC.

Speaking during Galaxy Digital Holdings' Q2 earnings call, Novogratz discussed the likelihood of the SEC granting approval for the spot bitcoin ETF applications from Blackrock and Invesco. He emphasized that both companies' signals indicate the question isn't whether approval will happen, but rather when. Novogratz approximated the approval timeline to be within four to six months, underscoring that the maximum timeframe is likely around six months. He suggested that the entire approval process for a bitcoin ETF could take roughly this duration.

Blackrock, a global asset management giant, filed for a spot bitcoin trust ETF in June. CEO Larry Fink stated their intention to democratize cryptocurrency, envisioning it as transcending any single currency. Novogratz highlighted the significance of Fink's positive remarks about bitcoin and the crypto sector, particularly considering Blackrock's substantial influence as a $7 trillion asset manager. He noted the notable shift in perspective, where Fink now recognizes bitcoin as the world's inaugural global form of money.

Galaxy Digital's partnership with Invesco, established in September, seeks to offer investors exposure to diverse products within the digital asset ecosystem. Analysts specializing in ETFs at Bloomberg have boosted the probability of the SEC approving a spot bitcoin ETF in the U.S. to 65%.
Novogratz believes that upon ETF approval, substantial capital inflows into the cryptocurrency space will be generated. Such an ETF would provide an accessible avenue for both institutional and retail investors to allocate significant capital to the cryptocurrency market.

In conclusion, Mike Novogratz's optimism, coupled with the efforts of major financial players such as Blackrock and Invesco, signifies a growing acceptance and interest in cryptocurrency-related investment vehicles. This momentum has the potential to pave the way for increased mainstream adoption of digital assets.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.