Galaxy Digital CEO Mike Novogratz says the U.S. Securities and Exchange Commission (SEC) will green light a Bitcoin exchange-traded fund (ETF) under the leadership of Gary Gensler.
In a new iConnections interview, Novogratz argues that current investment vehicles in the crypto space such as the Grayscale Bitcoin Trust (GBTC) give retail investors a raw deal, and Gensler is unlikely to allow the status quo to remain unchallenged.
“The biggest owner of Bitcoin in the world is the Grayscale Trust, right. It’s a closed-end fund run by Barry Silbert’s group. It is a brilliant piece of business. They have $25 billion worth of Bitcoin. They charge 2% annual fee. Plus, they make money on the way trading in. Most of that money comes from people putting Bitcoin in their fund, so borrowing Bitcoin, putting it in their fund, seasoning it for six months, and then getting shares of the trust.
So if you want to think about it, it’s