Mike Novogratz, the CEO of digital asset investment firm Galaxy Digital, appeared optimistic about the outcome of the growing list of applications to launch a spot Bitcoin exchange traded fund (ETF).
In an earnings call, Novogratz said his contacts at both BlackRock and Invesco gave reason to believe that an approval is a question of “when, not if,” and that the outside window for it to be finalized would likely be six months.
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
BlackRock applied for a spot Bitcoin ETF in June, and only a few days later, Invesco, in conjunction with Galaxy Digital, reactivated their application from 2021. Both BlackRock and Invesco later amended their filings to include a “surveillance-sharing agreement” with Coinbase – something that some industry watchers believe will be crucial to the U.S. Securities and Exchange Commission’s (SEC) decision in approving or denying these applications.
Read more: Spot Bitcoin ETFs Finally Receive SEC Seal of Approval
“We’re going to fight like cats and dogs to win market share there once it [a spot Bitcoin ETF] gets approved. It’s a big, big deal,” said Novogratz.
Indeed, the first to market will likely win big, and is evidenced by the success of the first Bitcoin Futures ETF to be approved. The ProShares Bitcoin ETF recorded $1.2 billion in turnover just two days after its launch, marking the fastest any ETF has crossed the billion-dollar mark in history.
This perceived first-mover advantage has led some firms, like Grayscale Investments, to appeal to the SEC to treat all spot Bitcoin ETF applications equally, and approve them all at the same time, should they choose to go in that direction.
Read more: BlackRock and Others Respond After SEC Issues Additional Comments on Spot Bitcoin ETF Applications
The SEC is yet to respond to any of the existing applications, but a decision is expected this week in line with the 45-day deadline from the date of the first filing.