The recent regulatory approval of 11 Bitcoin (BTC) spot exchange traded funds (ETFs) has set the stage for an intense battle between asset management firms.
Renowned crypto enthusiast Mike Novogratz, CEO of Galaxy Digital, has predicted a fierce battle for dominance between Invesco, BlackRock and Fidelity .
Speaking to CNBC, Novogratz emphasized that the cryptocurrency ETF landscape is not the same for everyone.
He explained that winning in this emerging market depends on factors such as execution, liquidity and hidden fees, and not just reducing expense ratios.
Mike Novogratz’s firm even partnered with Invesco to launch its own cryptocurrency ETF, so he has first-hand experience in this space.
“The regulatory approval of these 11 BTC spot ETFs this week has sparked a race for customers on Wall Street, with two to three management firms likely to win in the long run,” Novogratz said, pointing to the intense competition which has already begun in the race for investors’ favor.
Invesco, BlackRock and Fidelity will capture a significant share of the market.
While Novogratz refrained from making specific predictions about the ultimate winners, he believes Invesco, BlackRock and Fidelity will be the main contenders in this crypto showdown.
These industry giants are positioning themselves to capture a significant share of the growing market. Furthermore, Novogratz’s bullish outlook on Bitcoin remains unshakable.
He expects the cryptocurrency’s value to continue to rise, driven by the ongoing shortage of supply.
Many long-term BTC holders are reluctant to sell their holdings, resulting in lower supply and potential price increases.
Novogratz’s opinion is consistent with the view that BTC differs from traditional assets due to its unique culture of asset ownership.
Additionally, factors such as the upcoming halving cycle are expected to accelerate supply tightening and push Bitcoin prices further higher.
However, the experienced crypto enthusiast also urged caution.
He noted that while Bitcoin’s rise may be seen as a safe haven amid global economic uncertainty, it is partly a response to governments pumping excessive amounts of money into their economies and accumulating debt.
Novogratz noted that this trend could potentially be a sign of broader economic challenges.
SEC Commissioner Expresses Concerns About Bitcoin ETFs
While SEC Commissioner Mark Uyeda voted in favor of these groundbreaking approvals, he publicly expressed reservations about the Commission’s decision-making process.
Commissioner Uyeda, a key figure in the approval process, confirmed his support for the BTC ETF applications.
Still, he has raised concerns about the analytical methodology the SEC used to reach its conclusion.
“The flawed reasoning in the [spot BTC ETF] approval order could reverberate for years to come,” he wrote.
His fears stem from what he sees as a missed opportunity by the SEC to treat Bitcoin like other commodities.
To deepen his criticism, Uyeda pointed out that the commission has historically distinguished BTC ETFs through an unprecedented “significant size” test – a standard that he said the Bitcoin ETFs should have passed long ago.
This approach is in stark contrast to the way Bitcoin futures ETPs (Exchange-Traded Products) were treated under the same test.
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