Approval of a spot Bitcoin ETF remains in focus of the cryptocurrency market. There are strong expectations that this approval will open a breach in the regulatory bulwark, increasing crypto adoption. Michael Novogratz, founder and CEO of Galaxy Digital Holdings Ltd, says this approval is not far off.
Novogratz expects spot Bitcoin ETF approval later this year
Michael Novogratz, founder and CEO of Galaxy Digital Holdings Ltd, reiterated that he expects the US Securities and Exchange Commission to finally approve exchange-traded funds that invest directly in Bitcoin this year. Novogratz shared his views on the subject at the AIM Summit conference held in Dubai. In this regard, he said he expects the regulatory body to give approval in December. However, he noted that any Bitcoin ETF products will not begin trading until 2024.
cryptokoin.comAs you follow from , in August Grayscale Investments LLC scored a victory on the spot Bitcoin ETF. A US appeals court overturned the SEC’s rejection of Grayscale’s plan to spin off its Bitcoin trust into an ETF. Some industry observers have marked this development as a turning point. Meanwhile, the SEC saw no need to appeal the decision. Several applications from asset managers will go before the SEC for consideration next month. One of those applicants, Galaxy, is partnering with Invesco on an ETF application.
Cantor Fitzgerald: Spot Bitcoin ETF is the most important catalyst
According to analysts at financial services firm Cantor Fitzgerald, spot BTC ETF is on the verge of becoming a reality. The firm, which provides prime brokerage and investment banking services, is “increasingly confident” that asset managers’ applications to launch a spot ETF for Bitcoin will be approved by the SEC.
The SEC has been reluctant to approve such a product due to fear of manipulation on offshore spot platforms. Therefore, it is possible for them to approve new applicants due to the market surveillance procedures they recommend. The firm’s Josh Siegler and Will Carlson say a “comprehensive custody-sharing agreement with a significant regulated market” would appease regulators. Analysts say the spot Bitcon ETF approval will be a significant short-term catalyst for the BTC price. They also note that approval will be a “fundamental moment for the long-term adoption and legitimization of Bitcoin.”
BTC investors are also looking forward to the ETF!
So far, the SEC has rejected several previous spot Bitcoin ETF proposals, citing concerns about the lack of information sharing between exchanges to prevent market manipulation. However, BlackRock, which made its bid in June, is pursuing a more comprehensive strategy. The company struck a deal with Coinbase to detect and address market irregularities.
Bitcoin has surged in recent weeks around headlines tied to the potential approval of a spot ETF. In this process, the leading cryptocurrency tested above $ 35,000. Meanwhile, Bitcoin has more than doubled in value this year. It was little changed on Monday at about $34,655, or about half the all-time high of almost $69,000 reached in late 2021.
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