Crypto Leaders Mike Novogratz and Cathie Wood Predict Imminent SEC Approval for Bitcoin Spot ETFs: A Race for Market Share Begins
Leading voices in the cryptocurrency world, Galaxy Digital CEO Mike Novogratz and Ark Invest CEO Cathie Wood, have expressed confidence that the Securities and Exchange Commission (SEC) will inevitably approve applications for Bitcoin spot exchange-traded funds (ETFs).
With the SEC currently reviewing several applications for this new type of financial product, anticipation is mounting in the crypto community. Both Novogratz and Wood are publicly forecasting that the regulatory agency will grant permission, transforming the crypto landscape.
Novogratz, head of the crypto-focused investment firm Galaxy Digital, stated this week that he expects a spot Bitcoin ETF to be launched within the next four to six months. His prediction is based on insider information.
He explained during a recent earnings call, “Contacts from both Invesco and BlackRock lead you to believe that it’s more a matter of when than if this happens.” Galaxy and Invesco made joint efforts to reapply for a spot ETF in June, joining a series of companies making renewed attempts following BlackRock’s application. Presently, nine Bitcoin spot ETF applications are under SEC’s scrutiny.
Investors are closely watching the situation, as the approval of a spot Bitcoin ETF could lead to a substantial inflow of institutional money into the asset, potentially driving up its price. The race is now on for the first approval, as the initial winner may garner the lion’s share of the market.
Novogratz emphasized the stakes, saying, “We’re going to battle fiercely to secure market share once approval is given. It’s a major opportunity.”
The situation has historical precedent. When the SEC gave the nod to ProShares’ Bitcoin futures ETF in October 2021, the fund attracted significant initial investments, far outpacing subsequent competitors.
However, a new wrinkle has been introduced with the current wave of applications, as the funds in question share nearly identical structures. Some industry insiders believe the SEC will opt for an even-handed approach this time.
ARK Investment Management CEO Cathie Wood offered her perspective, stating, “I think the SEC, if it’s going to approve a Bitcoin ETF, will approve more than one simultaneously.” Wood’s Ark21 Shares ETF is poised to potentially receive the first approval on August 13, though many analysts foresee a delay by the SEC.
Adding complexity to the scenario is Grayscale, a fund currently in litigation with the SEC over its application. Grayscale contends that the agency must approve multiple ETFs at once to avoid appearing to favor one over the others.
As the countdown to the SEC’s decision continues, the sense of anticipation within the crypto community is palpable. The approval of a Bitcoin spot ETF could be a defining moment for the industry, with major players like Novogratz and Wood at the forefront of the action.
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