All eyes are on the Securities and Exchange Commission (SEC), which is considering a series of filings for a spot bitcoin exchange-traded fund (ETF), and two leading names in crypto are now publicly predicting that the agency will will eventually give them the green light .
Mike Novogratz, CEO of crypto investment manager Galaxy Digital, claimed this week, citing inside sources, that such a financial product will launch within the next four to six months.
“Our two contacts from both the Invesco side and the BlackRock side make you think this is a matter of when not if,” he said called according to Bloomberg ETF analyst Eric Balchunas during a conference call on Tuesday.
Galaxy partnered with Invesco to reapply for a spot ETF in June, becoming one of many companies to reapply shortly after BlackRock’s attempt. There are currently nine active bitcoin spot ETF applications awaiting SEC approval.
Many investors suspect that a spot Bitcoin ETF The approval will trigger an influx of institutional capital into Bitcoin, which could send the asset’s price skyrocketing. Therefore, the applicants in racing get the first approval and hope to capture most of the market share from the start.
“We will fight like cats and dogs to gain market share there once it gets approved,” added Novogratz. “It’s a big, big deal.”
When the SEC first approved ProShares’ bitcoin futures ETF in October 2021, the fund saw inflows on its opening day that dwarfed those of its peers that launched in the following days.
However, given that the latest spate of spot ETF filings are for funds with nearly identical structures, some suspect the SEC won’t be the favorite this time around.
“I think that if the SEC wants to approve a Bitcoin ETF, it will approve more than one at a time,” said Cathie Wood, CEO of ARK Investment Management Bloomberg On Monday. Wood’s own Ark21 Shares ETF is technically first in line for a possible Aug. 13 approval, though most analysts believe the SEC will delay that approval date.
Grayscale — another fund currently suing the SEC to get its own filing approved —argued Last month, the agency said it had to approve multiple ETFs at once to “not pick winners and losers.”
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