In an interview with CNBC, Michael Novogratz, CEO of Galaxy Digital, announced his predictions regarding the approval of a Bitcoin-based spot ETF by January.
Specifically, Novogratz expressed the belief that the United States Securities and Exchange Commission (SEC) will grant approval by the deadline set on January 10th. Let’s see all the details below.
Summary
ETF Spot on Bitcoin predicted by Galaxy Digital CEO in January, according to forecasts
As anticipated, recently Michael Novogratz announced that he expects the approval of a spot Bitcoin ETF within the month of January, specifically by January 10th.
Currently, the SEC is reviewing over a dozen requests from issuers aiming to introduce the first Spot ETF on Bitcoin in the United States.
The long-awaited decision is being closely followed by the digital asset market, as the approval of this investment product could have a significant impact.
In the course of 2023, ETFs have become particularly popular in the cryptocurrency sector, with several issuers filing applications with the SEC to launch the first Bitcoin Spot ETF in the United States.
Regarding the accommodative outlook of the Federal Reserve and the upcoming interest rate cuts, Novogratz stated the following:
“I believe that cryptocurrencies are liked.”
It then provided for the approval of the ETF by January 10, defining this date as a “deadline” for a decision by SEC Chairman Gary Gensler.
Even James Seyffart from Bloomberg has indicated the period from January 5th to 10th as the most likely window for a decision, suggesting that an approval could take place between the 8th and 10th of that month.
This perspective seems to be in line with Novogratz’s optimism regarding the possible approval.
7RCC also applies for the Bitcoin Spot ETF
The cryptocurrency company 7RCC has formally submitted a request to issue a Bitcoin spot ETF, joining a growing list of major asset managers seeking approval from the United States Securities and Exchange Commission (SEC) for such investment products.
In the preliminary prospectus filed on Monday, 7RCC outlined the investment strategy of the fund, which involves holding a combination of Bitcoin and financial instruments to gain exposure to carbon credit futures.
The ETF aims to track the daily variations in the price of Bitcoin and the value of Carbon Credit Futures, with an index designed to reflect 80% Bitcoin and 20% Carbon Credit Futures.
7RCC, specialized in environmental, social, and governance (ESG) investments, has indicated in the application the intention to appoint Gemini as custodian of the Bitcoin assets of the fund.
Gemini has emphasized that the proposed ETF offers investors the opportunity to diversify their portfolios, combining the innovation of Bitcoin with the progressive space of Carbon Credit Futures.
The request from 7RCC is part of a series of recent inquiries from major asset managers seeking approval for Bitcoin ETFs.
Among the protagonists of this scenario are BlackRock, WisdomTree, Ark Invest, and 21Shares.
Grayscale CEO on ETF approval: revolutionary impact
The CEO of Grayscale, Michael Sonnenshein, has recently explored the profound implications of a potential approval of the Bitcoin ETF in the United States.
During an interview with CNBC, he focused on the transformative effect that such approval could unleash in the cryptocurrency market.
Sonnenshein has indicated the approximately 30 trillion dollars of recommended wealth in the United States as a significant resource so far untapped, potentially ready to pour into the cryptocurrency market following this approval.
He also emphasized that the introduction of Bitcoin ETFs would further legitimize the market and provide an accessible investment channel for a wide range of investors.
In particular to those in the recommended sector who have so far hesitated to get involved with Bitcoin.
While avoiding specific predictions on Bitcoin prices, Sonnenshein highlighted the growing interest among investors in this cryptocurrency.
The approval of Bitcoin spot ETFs, according to him, would facilitate the entry of these investors into the world of cryptocurrencies, potentially causing a significant change in the market landscape.
Change that could manifest itself through an influx of funds from wealth advisors and their clients, who were waiting for more regulated and direct investment options.
In the interview, Sonnenshein also commented on the current rise in Bitcoin prices, attributing it to a combination of macroeconomic and microeconomic factors.
At a macro level, it has indicated inflationary pressures and rising interest rates as key catalysts driving investors towards Bitcoin as a store of value and hedge in their investment portfolios.
At a micro level, it has highlighted the optimism stemming from Grayscale’s recent legal victory against US regulators, opening up the possibility of listing the Grayscale Bitcoin Trust (GBTC) as a Bitcoin spot ETF.
This development, if realized, should significantly influence investor sentiment and promote greater acceptance of Bitcoin in financial markets, representing an important step towards the integration of cryptocurrencies into major investment strategies.
