Galaxy Digital CEO Michael Novogratz envisions a pivotal moment in the cryptocurrency realm, foreseeing the U.S. Securities and Exchange Commission (SEC) granting approval for the first spot Bitcoin exchange-traded funds (ETFs).
During a recent CNBC interview, Novogratz expanded on his expectations, shedding light on the cryptocurrency market and Bitcoin prices in 2023. He emphasized the influential role of decisions made by central banks in shaping trends across diverse asset classes. Additionally, Novogratz expressed optimism regarding the imminent approval of spot Bitcoin ETFs by the SEC.
Novogratz remarked, “We anticipate the approval of this ETF before January 10. That serves as the critical deadline for Gensler to act before encountering complications with Grayscale and potential legal challenges.”
Grayscale CEO Calls for Simultaneous Approval
It remains ambiguous whether Novogratz specifically referred to Grayscale’s Bitcoin ETF or other Bitcoin ETF applications from different financial institutions. Meanwhile, Grayscale CEO Michael Sonnenshein asserted that the SEC should approve Bitcoin ETF filings simultaneously to prevent any single issuer from gaining an early advantage.
“We’ve consistently advocated that when the commission is prepared to grant approvals for spot products to enter the market, it should happen in a unified manner,” Sonnenshein stated in an interview with Bloomberg. “Issuers who are operationally prepared to launch their products should do so collectively.”
Novogratz also commented on the performance of the crypto and Bitcoin markets, stating, “For those skeptical about Bitcoin, the Fed’s pivot is incredibly significant. The press conference was as dovish as expected, and the markets are responding accordingly.”
“I believe the crypto market appreciates it,” Novogratz concluded.
BlackRock Confirms Bitcoin ETF Ticker and Adopts Cash Redemption Model
BlackRock’s spot Bitcoin ETF has officially been designated the ticker IBIT, according to details disclosed in an amended S-1 filing submitted to the SEC. The filing signifies a transition to a cash redemption model, aligning with the preferences of the SEC. This model necessitates transactions in cash for Bitcoin holdings, deviating from the initially contemplated “in-kind” model.
In a parallel development, ARK Invest and 21Shares have also modified their filings to embrace this cash redemption model. The SEC’s determinations regarding several Bitcoin and Ethereum ETF applications, including those submitted by ARK Invest and 21Shares, are still pending as the year progresses into 2024.
