By
Temitope Olatunji
April 26th, 2024
Galaxy Digital CEO Novogratz argued that the recent Bitcoin ETF frenzy is an indicator that mass adoption is around the corner but the SEC remains a huge stumbling block.
The Bitcoin (BTC) market has undeniably come a long way in the past few years as an asset class and a form of payment. A recent study conducted by Triple-A concluded that the number of crypto users around the world has surpassed 420 million. However, the figure is still insignificant compared to the total population of more than 7 billion among many other business enterprises that have not yet adopted digital assets for fast and secure payments.
Mike Novogratz Says Bitcoin Mainstream Adoption Is at Hand
According to crypto veteran and the Chief Executive Officer at Galaxy Digital Holdings Ltd Mike Novogratz, during a recent Bloomberg interview, the Bitcoin mass adoption is at hand with heightened institutional demand. Novogratz argued that the recent Bitcoin ETF frenzy from huge investment fund managers is a clear indication that there is a pure demand for Bitcoin as an asset class. However, Novogratz stated that the United States Securities and Exchange Commission (SEC) needs a change in administration for the cryptocurrency industry to thrive in tandem with other markets.
Furthermore, Novogratz noted that the SEC has remained adamant about approving a Bitcoin ETF despite the change of administration in the past few years. The current SEC chair Gary Gensler was largely viewed as the crypto savior when he assumed the position two years ago. However, Gensler has turned against most crypto projects arguing that they should be classified under securities law, which slowly kills innovation and nascent technology.
Nonetheless, Novogratz expects the SEC to approve several Bitcoin ETFs, which will market the onset of mainstream adoption.
“BlackRock, Invesco, the group of ETF providers is a real signal that adoption is coming. Think about it. Larry Fink travels the world talking to the biggest pools of capital…. It makes it really easy when he’s out there saying Bitcoin is an alternative asset. And if you’re nervous about who’s your custodian, the ETF is a really easy first step. And so I just think if it happens, it’s the seal of approval from the SEC and the US government that this is an asset,” Novogratz noted.
Market Outlook
Over the past three weeks, the Bitcoin market has consolidated around $30k after experiencing significant resistance at $31k. The top digital asset is largely unchallenged in the industry with a market dominance of about 51.48 percent as of Thursday. However, Ethereum co-founder Vitalik Buterin has recently argued that the Bitcoin network needs to adopt more layer two (L2) scaling solutions like the lightning network to diversify its utility as a form of payment.