Spot Bitcoin ETF Approval Expected in Next Three Months, Says Galaxy Digital CEO
Galaxy Digital CEO Mike Novogratz believes that a spot Bitcoin exchange-traded fund (ETF) will likely receive approval from the Securities and Exchange Commission (SEC) within the next three months. In an interview with CNBC, Novogratz stated that the dialogue with the SEC is heading in the right direction and that there is a tremendous amount of pressure on the agency to approve the product. This pressure has increased after the SEC’s court loss to Grayscale, where judges deemed the agency “arbitrary and capricious” for denying Grayscale’s spot Bitcoin ETF applications.
The narrowing discount on Grayscale’s GBTC shares also indicates growing investor confidence in an upcoming ETF approval. Analysts and ETF applicants have noticed a more constructive change in tone from the SEC, with specific questions being asked during the comment period. Ark Invest CEO Cathie Wood also mentioned a change in the SEC’s behavior regarding ARK’s joint ETF filing with 21Shares and expressed hope for multiple Bitcoin ETF approvals.
Fidelity Updates Spot Bitcoin ETF Application to Address SEC Concerns
Fidelity provided an updated version of its spot Bitcoin ETF S-1 application, addressing SEC concerns. The new version includes additional details regarding custodial arrangements, mechanics around Bitcoin hard forks, notices about Bitcoin’s energy consumption, and other risk disclosures. Bloomberg ETF analyst James Seyffart expects further amendments to be made in the coming weeks and months as part of an ongoing dialogue between Fidelity and the SEC. It remains to be seen what additional information or requirements the SEC may request.
Hot Take: Increasing Optimism for Spot Bitcoin ETF Approval
The growing optimism surrounding spot Bitcoin ETF approval is driven by positive developments in discussions with the SEC and recent court rulings against the agency. Galaxy Digital CEO Mike Novogratz and Ark Invest CEO Cathie Wood both express confidence in the approval of multiple Bitcoin ETFs. The narrowing discount on Grayscale’s GBTC shares further reflects this sentiment. Fidelity’s updated application also demonstrates efforts to address SEC concerns and improve the chances of approval. If a spot Bitcoin ETF is approved, it could provide a significant boost to the adoption and mainstream acceptance of cryptocurrencies.
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