Cryptocurrency billionaire and founder of Galaxy Digital Holdings Ltd Mike Novogratz is optimistic that the leading cryptocurrency by market capitalization Bitcoin will rise significantly before the end of 2023. While speaking recently to Bloomberg in an interview, he also predicted that the United States Securities and Exchange Commission (SEC) will approve a spot BTC Exchange Traded Fund (ETF).
Bitcoin and the Interest Rate Hike Link
Novogratz believes that Bitcoin’s current consolidation phase, which is roughly between $28,000 and $32,000, will likely precede an outstanding price gain.
He also suggested that the digital currency would probably advance further after the Federal Reserve decides it’s done with interest-rate hikes. Currently, BTC is trading at $30,386.52, a 1.41% drop in the last 24 hours.
In the last month, the leading digital currency surged by 18% and about 84% this year. Much of its recent growth is driven by the optimism of a potential approval from the SEC for spot BTC ETFs.
BlackRock, Fidelity And Others to Promote BTC Adoption
The Galaxy Digital chief is positive that the approval will come and then investment managers like BlackRock, Invesco and others that filed a Bitcoin ETF application, will introduce broad adoption of BTC to investors who previously did not have access.
The SEC has received about seven applications for a spot BTC ETF so far. After BlackRock’s first application in mid-June, Valkyrie, Invesco, WisdomTree, Bitwise and Fidelity Investment filed for the same offering. Going down history, no approval has been given for a spot BTC ETF by the U.S. regulator, but this time around, there is so much optimism about the possibility of consent.
SEC Needs a Change of Administration
When the approval finally comes, it would be a seal of approval from the U.S. government, indicating that BTC has truly become a recognized asset class, per a statement by Novogratz.
Although, this does not rule out the challenging regulatory landscape of the SEC for crypto-related entities. The U.S. regulator and its Chair Gary Gensler are cracking down on crypto.
Ripple, Binance, Kraken and Coinbase have all felt the wrath of the SEC and Novogratz has pointed out that a change of heart or a change of administration would be crucial to seeing changes in the nascent crypto industry.