Insiders from BlackRock and Invesco are hinting that the United States might witness its first spot Bitcoin exchange-traded fund (Bitcoin ETF) approval in the next six months. According to Galaxy Digital CEO Mike Novogratz, who cited information from these insiders, the anticipated approval could potentially reshape the crypto market dynamics.

The Anticipated Approval and BlackRock Insider Insights

Blackrock (Source: The Trade)
BlackRock (Source: The Trade)

During Galaxy Digital’s Q2 earnings call on August 8th, Mike Novogratz shared insights garnered from industry insiders at BlackRock and Invesco. He revealed that both firms are signaling that the approval of a Bitcoin ETF in the US is a matter of “when,” not “if.” He noted that based on his conversations, the likely timeframe for this approval could be approximately four to six months, placing the potential approval window before February 2024. Despite the speculative nature of the timeline, the consensus among those informed by these insiders suggests that significant progress is on the horizon.

Galaxy Digital, led by Novogratz, is among the contenders vying for a spot Bitcoin ETF. The firm has partnered with Invesco, a substantial player in the asset management industry, to reapply for their Bitcoin ETF. This joint effort reflects a growing interest from established financial institutions in offering investment vehicles that cater to the cryptocurrency market.

Read more: U.S. Bitcoin ETF Decision: BlackRock and Giants Await SEC Verdict

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The SEC’s Role and Potential Motivations

The Sec Chairman, Gary Gensler (Source: Bitcoin.com News)
The SEC Chairman, Gary Gensler (Source: Bitcoin.com news)

The ball now lies in the court of the Securities and Exchange Commission (SEC), the regulatory body responsible for evaluating and approving such financial products. While neither Novogratz nor his team speculated on the exact timeline of the SEC’s decision, they remain optimistic about the eventual approval.

Read more: SEC Considers To Accept Series of Bitcoin ETF Applications from Major Financial Institutions

Galaxy Digital’s President, Chris Ferraro, suggested an interesting perspective. He hinted that the SEC might have additional reasons to consider approving a Bitcoin ETF, beyond the industry’s demands. Ferraro indicated that such a move could help the SEC avoid being labeled as “obstructionist” towards the crypto space. By demonstrating a willingness to embrace this emerging market through ETF approvals, the SEC could counter the perception of being anti-crypto.

Potential Ripple Effects and a Lawsuit’s Influence

Analysts have suggested that the approval of a spot Bitcoin ETF could spark a wave of similar approvals. This possibility is partly tied to ongoing legal proceedings involving Grayscale, a prominent crypto investment firm. Grayscale’s lawsuit against the SEC pertains to the rejection of its application to convert its Bitcoin Trust into a spot ETF. If the SEC faces setbacks in this lawsuit, it could potentially pave the way for multiple spot Bitcoin ETF approvals simultaneously.

Conclusion

The anticipated approval of a spot Bitcoin ETF in the US, as hinted by insiders at BlackRock and Invesco, is poised to reshape the cryptocurrency landscape. While the exact timing remains speculative, the industry consensus suggests a potential approval window within the next four to six months. This development could mark a significant step towards mainstream acceptance of cryptocurrencies and pave the way for further institutional participation in the market. As the industry eagerly awaits the SEC’s decision, all eyes are on the regulatory body’s next move and its potential implications for the evolving world of digital assets.

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