As per the recent development, the hype around the first Bitcoin ETF in the US is building again. The CEO of Galaxy Digital, Mike Novogratz, believes that Bitcoin (BTC) ETF could be a reality before February 2024. He also highlighted that the approval would be a big deal for the overall crypto industry. Galaxy Digital is one of the many contenders for a spot Bitcoin ETF and reapplied for its approval in June along with Invesco, which is the fourth-largest ETF issuer within the US.
According to "contacts" from inside BlackRock and Invesco spot Bitcoin ETF approval a matter of "when, not if" likely in "four to six months" — Galaxy CEO Mike Novogratz on earnings call this morning pic.twitter.com/TIhHC7xnHI
— Eric Balchunas (@EricBalchunas) August 8, 2023
Novogratz recently spoke to shareholders and shared his two cents on the matter as he did not have a proper comment on the expected timing of the ETF’s approval. The approval is currently shrouded in mystery as it sits with the SEC.
”The news of both BlackRock filing ETF and quite frankly, Invesco Plus Galaxy, we’re going to fight like cats and dogs to win market share there once it gets approved.”
Currently, several people in the crypto space believe that the approval by the SEC would not be a surprising move, and it would be done by the SEC to avoid being labeled as obstructionist.
Investors Spooked as Bitcoin ETF Approvals Might Face Delay
A number of analysts believe that a major wave of spot Bitcoin ETF could come much sooner, but it would depend on the ruling of the judge in Grayscale’s lawsuit against the SEC. Grayscale took the regulator to court just last year following its refusal to convert Bitcoin Trust into a Bitcoin ETF. If the SEC loses to Grayscale, the ‘path of least resistance’ could lead to simultaneous approval of some, or all Bitcoin ETF applications.
"If the SEC loses its case against @Grayscale, as we expect, the path of least resistance would be a wave of simultaneous approvals for all spot #Bitcoin ETF applicants — including Grayscale and the other eight active filings." @NYCStein in @Bloomberg today. Cc @EricBalchunas… pic.twitter.com/k72W6Ek7RK
— Craig Salm (@CraigSalm) August 2, 2023
The slow recovery of the crypto market seems to be catching up to the investors, especially the ones that hold large wallets. Their behavior already signified bearish tendencies, and the uncertainty surrounding the approval of Bitcoin ETFs is adding more fuel to the fire. Institutional investors have always been one of the major driving factors for rallies within the crypto space, and their sudden withdrawal greatly affects the market.
A similar sense of withdrawal is believed to be developing rapidly currently as major investors have started to take steps back from crypto-related assets. As of now, it was noted that investors pulled out more than $107 million from a series of crypto products.