Mike Novogratz, Chief Executive of Galaxy Investment Partners, expects the U.S. Securities & Exchange Commission (SEC) to approve a Spot Bitcoin ETF before the end of this calendar year. On CNBC’s “Squawk Box”, Novogratz said: “The SEC is heading in the right direction. It’s no longer necessary to talk about how Bitcoin works…It’s just a recognised macro asset and that’s a huge psychological shift.”
The billionaire investor believes the positive news of a potential ETF approval will drive the market higher. However, Barclays analyst Benjamin Budish gave a note of caution in his research published today, suggesting that the approval of a Spot Bitcoin ETF would have a “limited” benefit for Coinbase. He said: “It is not clear how successful ETF launches would translate into a meaningful P&L benefit for Coinbase, although it is an integral service provider.”
Barclays has an “underweight” rating on Coinbase stock with a target price of $70, which suggests a further 6.0% decline from its current level. However, Cathie Wood, founder of Ark Invest, was more positive, believing that the approval of a Spot Bitcoin ETF will bring many opportunities.
