- Galaxy Digital CEO Mike Novogratz has claimed that a spot Bitcoin ETF launch is a matter of “when, not if”
- Galaxy Digital is collaborating with Invesco for a Bitcoin ETF
- The race for an ETF is the most intense it has ever been
Mike Novogratz, the CEO of cryptocurrency investment firm Galaxy Digital, claimed yesterday that the launch of a spot Bitcoin ETF is a matter of “when, not if.” Novogratz’s assertion is backed by insider information, with the CEO saying he believes that approval could be 4-6 months away. Similarly, ARK Investment Management CEO Cathie Wood believes that the SEC will approve multiple Bitcoin ETFs when they do eventually do so.
Approval is Months Away
During an earnings call on Tuesday, Novogratz underlined the growing confidence in the potential of a Bitcoin ETF approval. He cited contacts within both Invesco and BlackRock who expressed the sentiment that it is a question of “when, not if” a Bitcoin ETF is approved:
According to “contacts” from inside BlackRock and Invesco spot Bitcoin ETF approval a matter of “when, not if” likely in “four to six months” — Galaxy CEO Mike Novogratz on earnings call this morning pic.twitter.com/TIhHC7xnHI
— Eric Balchunas (@EricBalchunas) August 8, 2023
Galaxy Digital, in collaboration with Invesco, reentered the ETF arena in June by applying for a spot ETF. This move aligns with a broader trend, as multiple firms, including BlackRock and Fidelity, have been making renewed attempts to secure regulatory approval. A total of nine Bitcoin spot ETF applications currently await approval from the U.S. Securities and Exchange Commission (SEC).
Floodgates Could Open
The potential approval of a spot Bitcoin ETF has sparked excitement among investors, who foresee the opening of floodgates for institutional capital into the cryptocurrency market. Consequently, companies competing for the coveted ETF approval are engaged in a fierce race to establish themselves as frontrunners and secure a substantial market share upon launch. Novogratz addressed the competitive landscape, stating, “We’re going to fight like cats and dogs to win market share there once it gets approved. It’s a big, big deal.”
Cathie Wood, the CEO of ARK Investment Management, shared her perspective on the matter with Bloomberg, expressing the view that the SEC might opt to greenlight multiple Bitcoin ETFs concurrently.
Wood remarked, “I think the SEC, if it’s going to approve a Bitcoin ETF, will approve more than one at once.” Wood’s own Ark21 Shares ETF is in line for potential approval on August 13, although market analysts anticipate a potential postponement by the SEC.
