SEC Has Been ‘Ass Backwards’ on Bitcoin ETF, Says Crypto Firebrand Mike Novogratz

SEC Has Been 'Ass Backwards' on Bitcoin ETF, Says Crypto Firebrand Mike Novogratz

The CEO of crypto investment firm Galaxy Digital, Mike Novogratz, believes the U.S. Securities and Exchange Commission (SEC) should reexamine its priorities and approve a Bitcoin exchange-traded fund (ETF).

In a new interview with SALT Talks, Novogratz says that while the job of the SEC is to protect investors, the delay in allowing a Bitcoin ETF is causing investors to pay a high premium to invest in the flagship cryptocurrency through a publicly-traded statutory trust.

“The SEC’s job is to protect the little guy, right. That’s the SEC’s job, protect the retail investor. And they have allowed the Grayscale Bitcoin Trust, which is an amazing piece of business for Barry Silbert and his team to grow to $25-$30 billion where investors are paying high fees, they are being arbitraged every day by hedge funds, right. Hedge funds put in Bitcoin, retail investors buy it at 20-25% premium… 18% premium… it changes day-to-day.

And so you have retail paying high fees and buying at bad prices. But that was okay. The SEC let that go but they won’t let an ETF go. I mean they were just ass backwards on this whole thing.”

Novogratz says President Biden’s nominee to head the SEC, Gary Gensler, will serve the crypto sector much better than his predecessor.

“You know chairman Clayton didn’t really get… and I think Gary Gensler is far, far more attuned to you know what his role is and understanding the intricacies of crypto.”

The Galaxy Investment Partners CEO now says a Bitcoin ETF will be approved “within 12 months” and will cause the Grayscale Trust premium to plummet.

“And so we are going to have an ETF, it’s going to make the Grayscale premium go from where it is to probably negative.”

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Featured Image: Shutterstock/ReneGamper

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