Novogratz: SEC Will Approve a Bitcoin ETF in 4 months

The first spot Bitcoin exchange-traded fund (ETF) in the US could launch early next year, Galaxy Digital CEO Mike Novogratz commented, citing BlackRock and Invesco insiders. He told shareholders during his company’s second-quarter earnings call that “the outside window is probably six months.” The quarterly report revealed a $46 million net loss.

One of many contenders

Novogratz added that the US Securities and Exchange Commission (SEC) could approve a Bitcoin ETF as soon as four months from now. Galaxy Digital is one of the many candidates for a spot Bitcoin ETF. The company filed its second application in June this year together with Invesco, whose assets under management amount to $1.5 trillion. Invesco is among the five biggest ETF issuers in the country.

Fighting like “cats and dogs”

Novogratz told shareholders that spot Bitcoin ETF issuers such as Invesco and BlackRock would enter into fierce competition for a portion of the market once approved. He said that the news of both BlackRock and Invesco filing for ETFs meant these companies and Galaxy would “fight like cats and dogs to win market share,” truly in line with his candid nature.

In response to a question from a shareholder, Galaxy Digital president Chris Ferraro said the SEC would probably approve at least one Bitcoin ETF to avoid being labeled anti-crypto. He believes that would be the most important reason for ETF approval, and Galaxy hopes this will impact their application as well.

Grayscale lawsuit outcome determines time frame

According to several key analysts, the outcome of Grayscale’s lawsuit against the SEC might lead to a wave of spot Bitcoin ETFs coming sooner than expected. In 2022, Grayscale sued the SEC for refusing to convert its Grayscale Bitcoin Trust into a spot ETF.

If the SEC loses the case, the regulator might approve some or all spot Bitcoin ETF applications, taking the path of “least resistance.” Even if they don’t, however, there are ways to sidestep the issue.