•11 exchange-traded funds for spot Bitcoin trading (spot Bitcoin ETF) were recently able to obtain regulatory approval, sparking an intense struggle between asset management companies, as Mike Novogratz, CEO of Galaxy Digital, predicted. And one of the well-known figures in the crypto sector - there is intense competition between Invesco (NYSE:IVZ), BlackRock, and Fidelity for dominance in the market.
•In his conversation with CNBC news channel, Novogratz confirmed that there is no unified formula in the sector of exchange-traded funds for digital currencies, explaining that the attempt to win the battle to control this emerging market depends on several factors, including the implementation mechanism, liquidity, and hidden fees, and does not depend only on reducing spending rates. .
•Galaxy Digital, where Novogratz is CEO, partnered with Invesco to launch its own ETF, so Novogratz has direct experience in this area.
•Novogratz continued, saying: “Granting regulatory approval for the establishment of 11 Bitcoin spot trading funds during this week led to the start of an intense competition between companies on Wall Street to attract the largest number of clients, with the possibility of two or three asset management companies winning this battle in the long term.” “; Novogratz also highlighted the intense struggle between companies to attract investors.
•Invesco, BlackRock, and Fidelity are seeking to secure the largest share of the market. Although he refrained from providing a clear prediction about who will win in this competition, Novogratz believes that each of Invesco, BlackRock, and Fidelity summarizes the main competitors in the confrontation taking place in the crypto sector, as these giant entities prepare to To control a large share of this growing market. On the other hand, Novogratz stressed his firm belief that the price of Bitcoin will rise in the future, and he also expected its value to increase further, given the continuing decline in its issuance rate.
•On the other hand, many long-term owners of Bitcoin (BTC) are reluctant to sell their holdings, which has led to a decrease in the number of currencies available for trading and an increase in the possibility of an increase in their price.
•Novogratz's statements intersect with the opinion that the culture of owning Bitcoin differs from that of traditional assets, and the upcoming halving will further reduce the supply of Bitcoin, which will further increase its price.
•However, Novogratz, who is well-versed in the crypto sector, stressed the importance of exercising caution, as he pointed out that the rise in the price of Bitcoin may make it a safe haven for investors from the turmoil witnessed in the global economy, but its rise comes - partly - as a reaction to governments pumping large amounts of money into... Their economies and the rise in government debt in general.
•Novogratz also pointed out that the current direction of governments may indicate widespread economic challenges that the world is preparing to face soon.
•SEC Member Expresses Concerns Regarding Bitcoin ETFs Despite SEC member Mark Uyeda's vote to approve the creation of Bitcoin ETFs, he has publicly expressed reservations about how the SEC decided to make the decision. .
•Committee member Ueda played an important role in completing the approval process, and he did not hide his support for the requests to create a Bitcoin ETF, but he made clear his concerns about the analytical methodology adopted by the SEC to reach its final decision.
•“The SEC’s flawed logic in making the decision to approve the creation of a spot Bitcoin ETF may have repercussions that will last for years to come,” Ueda expressed his opinion, adding that his concerns stem from, in his opinion, the SEC missing the opportunity to treat Bitcoin similarly to other commodities. .
•Diving into the details of his criticism, Ueda pointed out that the SEC has long treated Bitcoin ETFs in a distinctive way by evaluating them based on the “importance of their size” in an unprecedented manner, a standard that - in his opinion - these funds should have passed long ago.
•Ueda explained that the SEC's treatment of the aforementioned funds is in stark contrast to how it views exchange-traded products in the form of Bitcoin futures ETPs according to the same test.
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