Mike Novogratz Expects A Bitcoin ETF in 2021 From SEC Chief Gary Gensler

Bhushan Akolkar
February 11, 2021
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Bitcoin

Former Goldman Sachs manager and CEO of Galaxy Digital – Mike Novogratz – is optimistic that a U.S.-listed Bitcoin ETF will come by the end of this year. Speaking to Yahoo Finance, Novogratz said that the arrival of Bitcoin ETF will depend on the confluence of a number of factors.

This includes administration, securities watchdog, and further institutional adoption. “My guess is we get an ETF this year,” said Novogratz. Getting the license to launch a Bitcoin Exchange-Traded-Fund (ETF) has been a complicated process as the SEC has rejected several proposals in the past.

However, the number of institutions participating in Bitcoin over the last year has been unprecedented! Also, corporate players like Tesla have now joined the Bitcoin bandwagon and more players are likely to follow suit. Novogratz is very much bullish on digital asset managers which have grown its total assets under management by 10 times over the last year.

As of date, the Grayscale Trust has more than $30 billion in net assets under management comprising of all its crypto products. The thing with Grayscale is that only accredited investors buy its securities to gain exposure to cryptocurrencies. Thus, all these are traded over-the-counter (OTC) in the U.S. market.

Novogratz Is Optimistic About the New SEC Chief

Previous SEC Chief Jay Clayton, who’s the man behind rejecting multiple Bitcoin ETF proposals, left office in December 2020. Gary Gensler, the current nominee to head the SEC, is likely to have a friendlier approach over his predecessor. Having worked with Gensler in the past, Novogratz refers to him as someone who is tough but fair. Novogratz said:

“I am thrilled that Gary is the head of the SEC. Full disclosure — we worked together at Goldman Sachs back in 1997, ‘98 … he’s got more hair than I do. Not much, not much.

Gary taught a class on blockchain at M.I.T. and on crypto. He understands it cold. He’s progressive, right? And progressives broadly are going to go after … the rent takers. Crypto is not a rent taker… Crypto is trying to disrupt the rent takers.”

A number of crypto funds have been rolled out recently in the market. With institutional players joining the crypto market, we are likely to see more regulatory clarity ahead this year.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.