Galaxy Digital Boss Optimistic US Regulators Will Approve Bitcoin EFT

The public is still waiting for the approval of the Bitcoin ETF. (Photo; Doc. Newsbtc)

JAKARTA - Michael Novogratz, founder and CEO of Galaxy Digital, reiterated his belief that the United States Securities and Exchange Commission (SEC) will soon grant approval for the Exchange-Trad Fund (ETF) Bitcoin.

At the AIM Summit conference in Dubai, Novogratz estimated that the SEC would likely approve an ETF Bitcoin spot in December, although he also mentioned that the launch of Bitcoin ETF trading might not have occurred until 2024.

Galaxy Digital, along with several other asset managers, is awaiting SEC decisions regarding the ETF that will invest directly in Bitcoin. In this effort, Galaxy Digital has collaborated with Invesco, an investment management company.

Other companies such as BlackRock, Bitwise, Valkyrie, and VanEck have also submitted applications and are awaiting regulatory approval. Recently, VanEck and several other companies changed their apps, showing progress in dialogue between regulators and applicants.

According to analysts from Bloomberg, there is a possibility of about 90% that the SEC will approve an ETF Bitcoin spot. Court decisions supporting Grayscale in their dispute with the SEC have provided hope that crypto-based financial products will gain positive support from regulators in the future.

Previously, Novogratz had expressed confidence that the SEC would grant approval for the 2023 Bitcoin spot ETF in an interview with CNBC. "This will be approved... We think it will happen this year in 2023," Novogratz said. "All indications of the transaction appear to be heading in the right direction."

In addition, Galaxy Digital projects that the launch of the Bitcoin spot ETF has the potential to bring in significant capital that could push the price of Bitcoin up to 74%. Galaxy Digital itself estimates that around $14 billion (around Rp223 trillion) will flow to the Bitcoin ETF after its release. This number is projected to increase to USD 27 billion (Rp430 trillion) in the second year and USD 39 billion (Rp621 trillion) in the third year.