Novogratz Envisions Bitcoin ETF Clearance In 2023 - 'It's Gonna Get Approved'

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.

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Photo: CoinDesk on Flickr and Shutterstock