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Galaxy Digital CEO Mike Novogratz has predicted that US regulators will approve a spot Bitcoin ETF in January 2024 in a recent interview.
Novogratz also talked about Bitcoin’s impressive increase in value, attributing it to a favorable stance adopted by the Federal Reserve. BTC has registered a 150% increase in the past year.
Bitcoin ETF Approval Imminent
The Galaxy Digital CEO expressed confidence in approval for a spot Bitcoin ETF before the 10th of January. He highlighted the date’s significance due to the potential legal implications, adding that an improved macro backdrop in the US means the Securities and Exchange Commission may finally end the long wait for a spot Bitcoin or crypto ETF. He also anticipated that such an approval would energize an already buoyant and optimistic crypto market.
“I think crypto likes it. We’re going to get this ETF before the 10th of January. That’s kind of the drop-dead date that Gensler has before he gets in trouble with the Grayscale.”
However, he also flagged concerns, particularly about the behavior of high-risk, speculative traders, also known as de-gens. These de-gens contribute to the significant volatility witnessed in the larger crypto markets.
According to Bloomberg ETF analyst James Seyffart, the Securities and Exchange Commission faces a tight window between the 5th of January and the 10th of January to give its nod to a spot Bitcoin ETF. There are currently over a dozen spot Bitcoin ETF applications pending with the SEC, with industry watchers, including Novogratz, sensing that momentum is shifting in favor of an ETF approval after a string of rejections by regulators.
“Window is officially from the 5th of January to the 10th of January. Really, this means that any potential approval orders are going to come on either Monday, the 8th of January, Tuesday, the 9th of January, or Wednesday, the 10th of January. Mark your calendars, people.”
Bitcoin A Safe Haven
Novogratz also talked about Bitcoin’s classification as either a “safe haven” or a “speculative asset.” He also dismissed concerns surrounding the illicit use of Bitcoin, stating that the narrative that cryptocurrencies are used for illicit financing has been long debunked. He compared the low instances of crypto being used for illegal means to significant fines incurred by traditional financial institutions such as JPMorgan.
Future Regulatory Landscape
Novogratz remained bullish on Bitcoin in his long-term outlook for the crypto space. He also suggested that even a 1% allocation of institutional portfolios towards Bitcoin could significantly increase its price, thanks to its limited supply. Additionally, Novogratz stated he was confident that Bitcoin would surpass its previous all-time high of $69,000 in 2024. Speaking about the regulatory landscape, Novogratz stated that certain politicians and corporate leaders have been obstacles to the regulatory process regarding cryptocurrencies. He added that a bipartisan effort could provide a robust framework for stablecoins and the larger crypto market. However, he indicated that any substantial progress could be delayed until after the upcoming elections.
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