Mike Novogratz Says BlackRock's Filing For Bitcoin ETF Is 'The Best Thing That Could Happen'

Galaxy Digital Holdings BRPHF CEO Michael Novogratz says he is hoping BlackRock Inc's BLK filing for the Bitcoin BTC/USD ETF will succeed because it would make it easier for blue-chip investors to dive into the space and be the best thing that could happen to Bitcoin.

In an interview this week, Novogratz said that "there is no reason why we shouldn't have a Bitcoin ETF" since "we've got a futures ETF." He added that a judge "already chastised the SEC (Securities and Exchange Commission) for the lunacy of that in the Grayscale case."

"I say a Hail Mary and two Our Fathers every night that they are successful. If BlackRock CEO can pull it off, that's a stunningly big deal for the space because it makes it really easy for institutions to participate [as] they're the biggest asset manager in the world," he said. 

In a tweet on Friday, Novogratz added that BlackRock's potential success in its bid for a Bitcoin ETF would be optimal for the crypto asset. 

Last week, BlackRock filed a request with the SEC for the iShares Bitcoin Trust. 

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According to a filing with the SEC, BlackRock's iShares Bitcoin Trust will use Coinbase Custody as its custodian. 

With CEO Larry Fink at the helm, the asset management giant holds an impressive $9 trillion in assets under management.

Other companies that have attempted to create BTC ETFs include Grayscale Bitcoin Trust GBTC, VanEck and Cathie Wood's ARK Investment.

The SEC has already rejected proposals for Spot Bitcoin ETFs from Fidelity, Cboe Global Markets CBOE and NYDIG, Reuters reported. 

Last year, Grayscale sued SEC alleging that the regulatory body's rejection of Spot Bitcoin ETF applications while approving Bitcoin futures ETFs was an arbitrary and inconsistent decision. 

Earlier this month, the SEC filed prominent lawsuits against major exchanges Coinbase Global Inc COIN and Binance, sending shockwaves across the market.

Proponents say that a Spot Bitcoin ETF, designed to mirror the underlying market price of Bitcoin, would offer investors an avenue to gain exposure to Bitcoin without the need for direct ownership.

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