Mike Novogratz lifts hope in Bitcoin world: ‘Big things are coming’
In a recent interview, the CEO of blockchain investment firm Galaxy Digital, Mike Novogratz, announced that “big things are coming,” according to Contribune. Mike is also an advocate for the launch of a Bitcoin ETF in the US.
Ever since the first Bitcoin ETF was launched in Canada, American investors have sought that such an investment vehicle be approved by the Securities and Exchange Commission (SEC). This will potentially make sure there is an index fund that mirrors the price of bitcoin. There would also be no need to directly buy the cryptocurrency. Companies like Fidelity, SkyBridge, and Valkyrie have lately filed applications, and Galaxy Digital, in partnership with Bloomberg, also happens to be a candidate.
It is unclear when a Bitcoin ETF may actually be approved. However, the Federal Reserve previously acknowledged that bitcoin could really become an important digital asset. Back in September 2022, the White House appreciated the technological innovation of digital assets. It also praised the way these assets may be potentially applied. The four existing Bitcoin ETFs in Canada reportedly totals over 1.5 billion dollars in assets.
Mike’s statement, thus, appears to be a ray of hope.
What are Bitcoin ETFs?
According to Corporate Finance Institute, “Bitcoin ETFs are exchange-traded funds that track the value of Bitcoin and trade on traditional market exchanges rather than cryptocurrency exchanges. They allow investors to invest in Bitcoin without having to go through the hassle of using a cryptocurrency exchange while providing leverage to its price.”
“nvesting in a Bitcoin ETF provides leverage to the price of Bitcoin without having to learn about how Bitcoin works, having to sign up for a cryptocurrency exchange, and taking on the risks of owning Bitcoin directly. For example, Bitcoins are held in a wallet, and if an investor loses the password to the wallet, their Bitcoin is lost forever. A Bitcoin ETF simplifies the process of investing in Bitcoin,” it adds.