Novogratz: U.S. SEC Could Approve Bitcoin ETF in 2023

Last Updated October 19th 2023
3 Min Read

Key Takeaways -

  • Novogratz predicts SEC approval for a Bitcoin ETF in 2023, citing positive dialogues between the SEC and ETF issuers.
  • The SEC's decision not to appeal the Grayscale ruling is seen as a pivotal moment, opening the door for more Bitcoin ETFs.
  • Public demand and industry pressure are key factors influencing the SEC's decision, making approval more likely.

In the dynamic world of crypto, the potential SEC approval of a Bitcoin ETF stands as a crucial turning point. Galaxy Digital's CEO, Mike Novogratz, sees this happening in the near future, possibly by 2023. Let's delve into why he thinks so.

Constructive Dialogues: The SEC Warms Up

Constructive Dialogues: The SEC Warms Up

Novogratz places significant emphasis on the ongoing, constructive dialogues happening between the SEC and aspiring Bitcoin ETF issuers. He views these positive interactions as an encouraging development in the regulatory landscape. According to Novogratz, this is more than just a fleeting moment; it's a clear signal indicating that the SEC is gradually becoming more receptive to the idea of cryptocurrencies and Bitcoin ETFs in particular.

The Grayscale Ruling: A Milestone in Crypto Regulation

The SEC's choice not to contest the Grayscale ruling is another positive sign. Novogratz views this as a critical juncture and is even considering assessing Grayscale's bid to transition its GBTC into a spot Bitcoin ETF.

Public Sentiment and Industry Push: The Twin Catalysts

Novogratz identifies two primary forces shaping the SEC's stance on a Bitcoin ETF. First, the American public is increasingly vocal about wanting this investment vehicle. Second, there's a growing push from the industry, including financial and crypto entities, nudging the SEC toward a sensible verdict. Novogratz believes these factors are accelerating the SEC's move toward approval.

The Clock is Ticking: It's 'When,' Not 'If'

BlackRock, the global asset management leader, is also keen on a Bitcoin ETF. CEO Larry Fink revealed they've fielded multiple client questions about it, reinforcing Novogratz's belief that SEC approval is imminent.

Regulatory Roadblocks: The SEC's Checklist

James Seyffart, a seasoned ETF analyst at Bloomberg, underscores that the SEC is meticulously evaluating a range of critical factors before granting any approvals. These considerations span from how custody arrangements will be managed and adherence to Generally Accepted Accounting Principles (GAAP) to the necessity for transparent risk disclosures and assessing the environmental impact of Bitcoin mining activities.

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