Opinion: Bitcoin ETF Will Be SEC's 'Stamp of Approval'

Author: JESSE COGHLAN, COINTELEGRAPH; Compiler: Songxue, Jinse Finance

Mike Novogratz said the approval of a spot bitcoin exchange-traded fund (ETF) would amount to a “seal of approval” for bitcoin from the U.S. government and its securities regulator.

In an interview with Bloomberg on July 12, the founder of cryptocurrency investment firm Galaxy Digital talked about multiple spot bitcoin ETF filings with the U.S. Securities and Exchange Commission (SEC), including one from a $10 trillion asset manager. A BlackRock filing.

Novogratz said: “I do think that BlackRock, Invesco (and) the ETF provider group is a real signal that the era of Bitcoin usage is coming.”

He added that many people are “nervous” about investing in cryptocurrencies, and the approval of a **spot bitcoin ETF will be an “easy first step” for most people to start investing in the asset. **

“I just think that if this happens, that’s the SEC and the U.S. government’s stamp of approval.”

Novogratz explained that ETFs have a “massive infrastructure.” In addition to BlackRock, Valkyrie, Invesco, VanEck, WisdomTree, Fidelity, and a proposed ETF from a joint fund of ARK Invest and 21Shares are also awaiting approval. Many of these ETFs could end up being approved, according to Novogratz.

“The SEC is not going to approve this, so these large sales forces will provide access to bitcoin to people who were previously inaccessible.”

SEC Chairman Gary Gensler has previously claimed that “everything but Bitcoin” falls under his agency’s remit and that other crypto projects “are securities” because they often have well-known developers , and predict profits based on their work.

Novogratz was evasive when asked about his thoughts on whether Galaxy and Invesco’s spot bitcoin ETFs could be listed by the end of the year.

“This SEC is very stubborn and tough on cryptocurrencies,” he said.

“No one important person has been able to go through the listing process. We’re in the middle of it, and it’s been a long, frustrating road. I’ll just leave it at that,” he added.

“I think we may need a change of mind from the SEC or a change of government to see real progress in U.S. cryptocurrency regulation.”

Novogratz predicts that the price of Bitcoin will reach a high by the end of the year. “If you take the top off, we have a nice edge,” he said.