Mike Novogratz Forecasts SEC Approval of Bitcoin ETF This Year

The new head of the US Securities and Exchange Commission (SEC) and rising institutional investor interest have increased the odds of approval for a Bitcoin-based exchange-traded fund (ETF). Galaxy Digital founder Mike Novogratz told Yahoo Finance in an interview that he expects this by the end of the year.

“My forecast for Bitcoin ETF is by the end of the year. The best story in the market right now is Grayscale’s Bitcoin Trust (GBTC),” he said.

During the interview, Novogratz highlighted the drawbacks of GBTC, namely its 2.5% management fee and wide price swings relative to Bitcoin’s movements.

“If the SEC’s job is to protect the ‘little guy,’ it’s not being achieved in any meaningful way right now. They didn’t want to permit an ETF in this space, but they made an exception for hedge funds that ‘profit from arbitrage,'” he commented.

As of now, the SEC has reviewed more than 20 applications for Bitcoin ETFs.

In January, applications were filed by investment firms Valkyrie Digital Assets and VanEck after the Commission’s leadership change.

On the eve, SEC Commissioner Hester Peirce noted that the market is ready for the launch of a Bitcoin ETP.

On February 12, it emerged that Canada registered a Bitcoin ETF before the United States.

Earlier, Grayscale Investments filed an application to list the Bitcoin Trust on the NYSE-ARCA exchange, which is still under review. Clients of the company can currently purchase this investment product on the over-the-counter market.

In February, the total assets under management by Grayscale Investments surpassed $30 billion. GBTC accounted for 80% of that amount.

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