Michael Novogratz sees a Bitcoin ETF approved by the Security Exchange Commission SEC this year.
CEO of Galaxy Digital Holdings, Michael Novogratz recently exuded confidence in the approval of spot Bitcoin-exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC) this year.
Michael Novogratz along with Grayscale Investments LLC thinks a green light for such ETFs would expose the crypto assets to more liquidity which would be positive for crypto assets.
Exchange-traded funds (ETFs) are SEC-registered investment companies that offer investors a way to pool their money in a fund that invests in stocks, bonds, or other assets. In return, investors receive an interest in the fund.
“Michael Novogratz sees a Bitcoin ETF approved by the Security Exchange Commission SEC this year”
WEALTH TRAINING COMPANY
Michael Novogratz sees a Bitcoin ETF approved by the SEC happening in less than two months
“It’s gonna get approved,” said Novogratz during a recent conversation on CNBC, projecting a 2023 timeline for the anticipated SEC endorsement.
“We 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,” he said.
Bitcoin ETFs are exchange-traded funds that track the price of Bitcoin through derivatives, spot markets, or Bitcoin ownership. They enable individuals to allocate funds to Bitcoin without needing to manage the asset utilizing a cryptocurrency exchange while offering leverage to its price.
“It’s gonna get approved”
MICHAEL NOVOGRATZ
Michael Novogratz sees a Bitcoin ETF approved by the SEC which will increase mainstream adoption of cryptocurrencies
Such ETFs have been designed to enable more retail individual investors to allocate their savings to Bitcoin without the hassle of buying the cryptocurrency directly. These investment funds eliminate the requirement of excessive funds and security procedures while offering a type of investment that is already familiar to investors. One can trade such ETFs on stock exchanges.
“Cryptocurrencies with utility facilitating blockchain technology, smart contracts, where the network chain is in finite supply could be a hedge against inflation” – Wealth Training Company
Michael Novogratz sees a Bitcoin ETF, but how will it work?
Bitcoin ETF meaning refers to an exchange-traded fund that predominantly invests in Bitcoin, the original cryptocurrency. Investing in such an ETF offers leverage to Bitcoin’s price without requiring investors to know how this cryptocurrency works. Moreover, it provides investors with portfolio diversification as ETFs can hold multiple assets.
So perhaps the main advantage of a Bitcoin ETF is that it enables investors to diversify their crypto investment across a range of cryptocurrencies, thereby spreading their risk across cryptocurrencies.
Michael Novogratz sees a Bitcoin ETF approved by the SEC as one of many signs that cryptocurrencies are here to stay as their adoption goes mainstream.
Cryptocurrencies with utility facilitating blockchain technology, smart contracts, where the network chain is in finite supply could be a hedge against inflation.
Perhaps that is why cryptocurrencies, along with the more traditional precious metals, are bouncing from their lower range.
No third-party counter risk, where the investor holds the private key, is one of the main advantages of owning cryptocurrencies. In the age of bank runs and fraudulent exchanges, an asset with no third-party counter risk is attractive hugely for investors.
However, investing with an ETF has third-party risk.
So Michael Novogratz sees a Bitcoin ETF approved by the SEC, but crypto purists would say, who cares?
