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Galaxy Digital CEO thinks Bitcoin ETF is just 6 months away for approval

According to Galaxy Digital CEO Mike Novogratz, the first spot Bitcoin exchange-traded fund (ETF) in the United States may be approved before February 2024, citing insider information from BlackRock and Invesco.

“This is a huge deal. It’s significant because, according to both of our contacts from the Invesco and BlackRock sides, “the outside window is probably six months,” Novogratz said on August 8 during Galaxy’s Q2 earnings call, which revealed a $46 million net loss.

If you had to put a “pin the tail on the donkey” on it, the SEC would probably authorise a Bitcoin ETF in four to six months.

Bitcoin ETF is just 6 months away for approval
Bitcoin ETF is just 6 months away for approval

One of the many candidates for a Bitcoin ETF is Novogratz’s Galaxy Digital, which registered in June alongside Invesco, the fourth-largest ETF issuer in the U.S., with $1.5 trillion asset manager.

Novogratz told shareholders that he had nothing to add, when asked about the estimated date of the ETF’s approval. This is because the ETF is still pending approval from the Securities and Exchange Commission.

Nevertheless, Novogratz, thinks that once authorised, issuers of spot Bitcoin ETFs like BlackRock and Invesco will be competing fiercely for market dominance.

We’re going to compete like cats and dogs to capture market share there once it is approved, according to the announcement of both BlackRock filing an ETF and, quite frankly, Invesco Plus Galaxy.

Chris Ferraro, president of Galaxy Digital, said in answer to a query that he wouldn’t be shocked if the SEC ultimately approves an upcoming Bitcoin ETF to avoid being branded as “obstructionist.”

“I believe that’s where the prospective ETF approval comes in, saying, look, you can’t label us anti-crypto, we just authorised an ETF. We are thus hoping that our filing will receive the same treatment,” added Ferraro.

Bitcoin ETF is just 6 months away for approval
Bitcoin ETF is just 6 months away for approval

In the meantime, depending on the outcome of Grayscale’s case against the SEC, some analysts think the wave of spot Bitcoin ETFs may arrive even sooner.

Last year, Grayscale filed a lawsuit against the SEC when the agency denied its request to turn its Grayscale Bitcoin Trust into a spot ETF.

Analysts think should the SEC lose its lawsuit against Grayscale, the path of least resistance would be the simultaneous acceptance of a number of or all spot Bitcoin ETF applicants.

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