The evolving landscape of digital assets and regulatory clarity is likely to trigger a shift in the U.S. Securities and Exchange Commission's (SEC) stance on Bitcoin Exchange-Traded Funds (ETFs) by the end of 2023. This prediction was made by Mike Novogratz, CEO of Galaxy Digital, during a SquawkBox interview relayed on Thursday through a tweet by Collin Brown.
Novogratz highlighted the intellectual inconsistency in the SEC's current rulings, which allow futures ETFs but not cash ones. He emphasized that there is a strong demand from the American public for such offerings. Furthermore, he noted that SEC Chairman Gary Gensler is under intense pressure from industry giants such as BlackRock (NYSE:BLK), Fidelity, Grayscale, and Invesco to meet this demand.
This pressure comes amid an evolving digital asset landscape and a coordinated push for regulatory clarity from crypto insiders despite their vested interests. Public sentiment, filings, and an expected positive market response all reflect a heightened optimism for Bitcoin ETF (TSX:EBIT) approval.
On Friday, Melker also projected Bitcoin spot ETF approval due to the shifting dialogues within the SEC and an encouraging post from Andrew. This speculation aligns with Novogratz's earlier projection and Gensler’s active consideration of the product.
The journey towards Bitcoin spot ETFs started with an application by the Winklevoss Twins in 2013. If approved, these ETFs would render Bitcoin a compliant security for stock exchange trading. Key influences on this potential shift include Grayscale Investments' litigation loss, pressure from lawmakers and industry stakeholders, and a fake news application from BlackRock.
Larry Fink of BlackRock noted Bitcoin's "flight to quality", indicating that investors are eagerly waiting for exposure. The approval of Bitcoin spot ETFs could potentially ignite the next bull cycle for Bitcoin, as suggested by a recent short-paced market rally.
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