Galaxy Digital CEO Predicts "Big Things" for Bitcoin ETF

The crypto market holds its breath. Mike Novogratz, CEO of blockchain investment firm Galaxy Digital and advocate for the launch of a Bitcoin ETF in the United States, has just announced in an interview that “big things are coming.” A cryptic but promising statement about the Bitcoin ETF saga that’s been unfolding for nearly 10 years.

The Bitcoin ETF, The Holy Grail for American Investors 

Since 2013 and the launch of the first Bitcoin ETF in Canada, American investors have been calling for the approval of such an investment vehicle by the Securities and Exchange Commission (SEC). The idea? An index fund that mirrors the price of bitcoin, without the need to directly purchase the cryptocurrency.

Several companies have filed applications in recent months, such as Fidelity, SkyBridge, or Valkyrie. Galaxy Digital, Novogratz’s firm, is also a candidate, in partnership with Bloomberg. 

The stakes are enormous: making bitcoin investment more accessible to institutional investors, who represent billions of dollars of fresh capital potential. Hence the market’s impatience after nearly a decade of waiting.

 The Quiet Optimism of American Authorities 

Although no specific date has been released regarding the possible future approval of a Bitcoin ETF, several signals suggest that the green light may soon be given. The chairman of the SEC, Gary Gensler, appears more open to cryptocurrencies. The Federal Reserve itself has acknowledged that bitcoin could be considered a legitimate digital asset.

More importantly, the White House released a report in September 2022 in favor of a more flexible regulatory framework. It praised the technological innovation of digital assets and their potential applications. This is a notable change in discourse compared to previous administrations. 

The recent enthusiastic statement by the CEO of Galaxy thus seems to confirm this cautious optimism for a possible upcoming approval. For the American crypto ecosystem, this would be a historic milestone.

A Potentially Significant Impact 

It’s still difficult to predict precisely the repercussions of a green light from the SEC. But there’s no doubt that billions of dollars in institutional investments could flow into bitcoin, driving up its price. 

In Canada alone, the four existing Bitcoin ETFs already total more than 1.5 billion dollars in assets. And Fidelity estimated in 2021 that if only 1% of American institutional investor portfolios were allocated to bitcoin, it would represent 600 billion dollars.

With this cryptic but promising declaration, the CEO of Galaxy Digital further strengthens the fervent hope of American investors. The approval of a Bitcoin ETF seems to be just a matter of months away, which would mark a major recognition for digital assets by the authorities. The long-awaited baptism of digital gold on Wall Street could be approaching.