Zinger Key Points
- Novogratz's optimism stems from a legal victory for Grayscale Investments, marking a significant setback for the SEC.
- Galaxy Digital, forging alliances like with Invesco, aims to navigate the emerging regulatory landscape for digital asset ETFs.
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Galaxy Digital Holdings Ltd. BRPHF CEO Michael Novogratz on Wednesday exuded confidence in the approval of spot Bitcoin-exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC) this year.
Reflecting on the recent legal stride by Grayscale Investments LLC, Novogratz anticipates a green light for such ETFs, marking notable progress in the realm of digital assets, a sector slated for elaborate discussions at Benzinga's Future of Digital Assets conference on Nov. 14.
"It's gonna get approved," said Novogratz during a recent conversation on CNBC, projecting a 2023 timeline for the anticipated SEC endorsement.
"We actually think it’s gonna happen in 2023," he reaffirmed.
This optimistic outlook stems from a noteworthy legal setback for the SEC, encapsulated in Novogratz's words, "The most significant piece is the SEC lost in the court."
This reference recalls August when Grayscale Investments LLC secured a pivotal victory.
A U.S. appeals panel decided in favor of Grayscale, overturning the SEC's earlier disapproval concerning the transformation of its Bitcoin trust into an ETF.
The SEC, opting not to contest the ruling, further cemented this positive trajectory.
Also Read: Hong Kong Investors Lose Faith In Crypto After JPEX Scandal: Survey
This legal landmark is perceived by many as a watershed moment, paving the way for further integration of cryptocurrencies into traditional financial structures.
In light of these developments, Galaxy is now forging alliances to make headway in this emerging space, with Novogratz mentioning a collaborative endeavor with Invesco aimed at ETF application.
The unfolding scenario paints a hopeful picture for the proponents of digital assets, setting a precedent for regulatory accommodations.
Read Next: Can Bitcoin Spot ETFs Unleash A Trillion-Dollar Crypto Boom? Here's What Data Shows
Join Benzinga's Fintech Deal Day & Awards on Nov. 13 and Future of Digital Assets on Nov. 14 in New York City to stay updated on trends like AI, regulations, SEC actions and institutional adoption in the crypto space. Secure early bird discounted tickets now!
Photo: CoinDesk on Flickr and Shutterstock
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