Galaxy Digital Founder Says Bitcoin ETF ‘Essential’

Updated: 13 July 2023

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Galaxy Digital founder Mike Novogratz has told Bloomberg that a Bitcoin ETF would be the ‘seal of approval’ that the currency has been waiting for.

In an interview with Bloomberg on July 12, Mike Novogratz, the founder and CEO of Galaxy Digital, opened up about his opinions on the ongoing to-and-fro multi-spot Bitcoin ETF filling battles by some Wall Street giants with the U.S. SEC (Securities and Exchange Commissions (SEC).

The wait for the green light for spot Bitcoin ETFs from the SEC and US government officials has been going on for a while now. Mike Novogratz believes that if Bitcoin ETF gets the nod, then it is likely that Bitcoin will follow suit.

Bitcoin Will End the Year ‘On a High’

When asked if the Bitcoin price will break out of its current state of $30000 or if there is still more downside risk for the currency, Novogratz predicted that Bitcoin will end the year on a high.

“We are consolidating between the call of 28 and 32k. I think, if you take out the top we will have a nice leg up”, he said. He believes that it might happen when the Fed finally pivots or flinches.

He also remarked that, ironically, the government is selling their Bitcoins before they are going to approve the ETFs. He said, “They (the government) are not best of traders”.

This indicates that it is likely that Bitcoin will go higher as soon as Bitcoin ETF gets approved.

Today, Bitcoin is trading at $30,534. Its price has witnessed a 0.5% decline in the last 24 hours. Its 24-hour high was $30,960, while the 24-hour low was around $30,220. It currently has a standing market capital of $593 billion.

Galaxy Digital Founder Mike Novogratz says he expects Bitcoin to rise by the end of this year and predicted the US will approve Bitcoin exchange-traded funds https://t.co/LQlWlmmWEN pic.twitter.com/v7Db1dGjrV

— Bloomberg Crypto (@crypto) July 12, 2023

Novogratz believes SEC Approval May Be in Sight

He thinks that Bitcoin ETF fillings from names like Blackrock and Invesco are a positive sign that approval is coming.

“Larry Finks travels the world talking to the biggest pools of capital…that Bitcoin is the alternative,” Novogratz said.

He quipped that Bitcoin ETF will be an easy first step for those who are nervous about custodianship to be able to start investing in cryptos.

Previously, the CEO of Grayscale Investments, Michael Sonnenshein, had made a similar remark that the droves of fillings for spot Bitcoin ETF should be considered as a “moment of validation” for Bitcoin.

Giant Infrastructure in Place for ETFs

In the interview, Novogratz said that many big forces are filing for Bitcoin ETFs. He believes that SEC is not going to approve just now but the whole lot.

So, if approval happens, then there will be these “giant sales forces out there giving access to people that didn’t have access before”, Novogratz said.

Till now, around 7 major players, including Blackrock, Fidelity, Invesco, VanEck, and Valkyrie, have applied for their spot in Bitcoin ETF approval before the SEC.

Galaxy Digital Filing for ETF Approval

When asked if Galaxy Digital has any plans to list its Bitcoin ETF before the year ends, Novogratz said, “SEC has been really stubborn and tough on crypto”.

He also pointed out that no one significant has been able to pass through the listing process. However, he did admit that Galaxy is in the process of listing, which has so far been a frustrating journey.

Novogratz further added that to see real progress in the crypto regulation in the US, either we need a change of heart at the SEC officials or a change of administration.

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