Bitcoin ETF May Happen this Year –Mike Novogratz

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The cryptocurrency industry has hoped for a Bitcoin ETF for many years as a means to grow it. However, this has been faced with different challenges that have stopped such dreams from coming to pass. This dream may be on its way to fulfillment in 2021 though. Hedge fund manager and Bitcoin bull Mike Novogratz, CEO of Galaxy Digital says an ETF could become a reality in 2021 as demand for the digital asset continues to rise.

There have been many attempts at getting a licence for a Bitcoin ETF with Gemini, Bitwise and other companies filing for it. The SEC under Jay Clayton had repeatedly postponed the approval of these applications to the point that all hopes of an ETF have been lost. This has been blamed mainly on Clayton’s dislike of cryptocurrency rather than the merit of the applications.

Better Administration for Growth

As Clayton’s leadership ended with the end of Donald Trump as president, there has been heightened optimism that the cryptocurrency industry will see better days. This includes the possible approval of a Bitcoin ETF which Novogratz says is likely because this administration has more crypto-friendly regulators.

Notably, President Joe Biden’s pick for the office of SEC chairman, Gary Gensler is very knowledgeable about cryptocurrencies. He also teaches blockchain and cryptocurrency at Harvard University. Not only is Gensler interested in cryptocurrency and its growth but  he is also interested in sanitizing the space to make mainstream adoption easier.

Following the SEC’s lawsuit against Ripple, he said there may be more unregistered securities in the industry which the SEC needs to go after. According to him, such changes must be made if mainstream confidence in the industry will grow to the point of actual adoption. He also advocates that crypto exchanges be brought directly under Federal supervision teo boost confidence in the industry.

Greater Adoption Could Encourage ETF

Another reason Novogratz is optimistic for an ETF is the rising adoption of Bitcoin. In 2020, dozens of corporate organisations bought the asset and more have done the same this year. Notably, Tesla bought Bitcoin worth $1.5 billion earlier this week and Twitter may be on its way to doing the same. Today, news broke that Kenya’s central bank will be adopting Bitcoin as its reserve currency.

These adoptions have made Bitcoin to become a more stable asset and experts say it is much less risky than it used to be. As the SEC has always argued that Bitcoin is too volatile to have an ETF, this may be the time for an ETF as the volatility drops and the market matures especially as more institutional players enter it.

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