In a recent Fox Business interview, Mike Novogratz – a prominent Bitcoin bull, and CEO of Galaxy Digital – expressed optimism regarding the potential of an exchange traded fund (ETF) for Bitcoin.

In a tweet, Novogratz described BlackRock’s potential ETF launch in Bitcoin as “the best thing to happen”.

He explained to Liz Claman that, if BlackRock CEO Larry Fink was able to launch a Bitcoin ETF successfully, this would boost institutional participation significantly in the crypto-space.

Novogratz made his statements during a period of regulatory turmoil for cryptocurrencies in the U.S. He specifically referred to the scrutiny that the crypto industry is currently under, as the Securities and Exchange Commission has sued Binance and Coinbase.

He said that the regulatory uncertainty has caused institutional investment in crypto to be slowed.

Novogratz says that despite these challenges, retail investors continue to purchase cryptocurrencies. Bitcoin is still strong, and it’s trading at over $25,000 despite the turbulent environment. Novogratz stated that if you told people all this would happen, and Bitcoin would be still up for the year, many would scratch their head.

Novogratz also revealed that it is ‘almost necessary’ to relocate Galaxy’s overseas operations in order to be able operate without fear.

He specifically pointed out Hong Kong as a possible destination, signaling that cryptocurrency businesses could respond differently to regulatory pressures in the future.

In a recent interview with CNBC, American billionaire hedge-fund manager Paul Tudor Jones stated that bitcoin has a “real problem” due to the unfriendly regulations in the US.

Jones stated that Bitcoin has a serious problem in the United States because there is a whole regulatory apparatus against Bitcoin.

The infamous trader appeared on CNBC’s Squawk Box Monday and spoke about his bitcoin investments. He said that he would stick to it.

Jones said, “I’m sticking to it.” I’m going always to stick with it, as a small diversification in my portfolio.

Bitcoin’s value peaked in November 2021 at around $68,000. It has now fallen to about $27,000 by Monday evening.

US regulators’ view on Bitcoin

In an interview with ‘s Intelligencer, Gary Gensler, the chair of the Securities and Exchange Commission, said bitcoin was not a financial instrument.

Gensler also stated that most cryptocurrencies were securities, and are therefore regulated by SEC.

It is important to make this distinction, as the CFTC regulates futures, swaps and options, while the SEC oversees securities like stocks.

Rostin Behram, Chair of the Commodity Futures Trading Commission, believes that bitcoin is a product and therefore falls under his jurisdiction.

US lawmakers are working to create a bill that will make it clearer whether cryptocurrencies should be classified as commodities or securities.

Sens. According to blockworks, Cynthia Lummis (R-Wyo.) and Kirsten Gilibrand (D-N.Y.) plan to introduce this spring a revised version of the Responsible Innovation Act that was first introduced in June last year.

The pair also addressed stablecoins, taxes and the CFTC.

The legislators said that the newer version would be more detailed in defining tokens, and will clarify definitions.

On Tuesday, the dollar rose sharply, surpassing $30,000 for the first time since June 2022. This was because markets were betting on a Federal Reserve that is less hawkish in the future. Sentiment also improved due to easing concerns of a banking crises.

The world’s biggest cryptocurrency rose 6.3% to $30.061.0 at 01:23 ET (05.23 GMT), marking its highest level in ten months. The token led gains among its cryptocurrency peers with up 3.3% and Binance Coin adding 4.6% and 2.3% respectively.

The total crypto market capitalization grew by Bitcoin’s gains to $1.4 trillion. Bitcoin’s gains on Tuesday pushed it up to 80%, far exceeding the performance of other asset classes.

The latest Bitcoin rally is occurring amid a wider improvement in sentiment. Markets began pricing in the possibility of a limited number interest rate increases by in the coming month, especially as the U.S. economic slowdown continues.

This idea also led to strong stock market rallies on Tuesday. Dollar index futures indicate that the Fed will likely raise interest rates at least once more. However, the dollar index indicates that markets are positioned for a pause or even a reversal of Fed’s hawkish stance.

Bitcoin and other cryptocurrency investors will be better off if the Fed is less hawkish. A sharp rise in interest rates has wiped out more than two-thirds total crypto market capitalization by 2022.

This week’s focus is on consumer prices index inflation data. For more information on the direction of interest rates, see the Fed’s March meeting.

Bitcoin’s surge in value over the last month has helped to evade fears of a banking crise. The token attracted safe haven players amid fears about a wider collapse in the banking sector.

However, the token’s trading volume was relatively small which led to larger price movements. This is especially true as investors became less fond of cryptocurrencies after its plunge through 2022.

Investors were also concerned by cryptocurrencies due to a string of scandals and bankruptcies. Meanwhile, the U.S. government was engaged in a regulatory crusade against this space.

Jeremy Hunt, the finance minister, delivered the spring budget 2023 on Wednesday amid chaos in the banking industry following the collapse Silicon Valley Bank’s U.K. branch. said that Hunt was responsible for the bank’s collapse and explained to BBC journalists that the U.K. shutdown had been caused by Hunt.

The British financial system was not at risk from any financial institution. The budget published by Treasury discusses the U.K. government’s decisions to’restore financial stability, support public service and lay the foundations for long-term economic growth’.

The budget discusses spending and tax, and specifically addresses “tackling promoters for tax avoidance”. The U.K. government plans to create new criminal offenses against tax evaders and will consult soon on the matter.

According to the Treasury budget, ‘The government will also consult about expediting the disqualification for directors of companies involved with tax avoidance promotion, including those who exercise control over a company’.

The Treasury document also mentions that the U.K. will amend its self-assessment tax forms in order to account for cryptocurrency assets. The Treasury notice explains that the government will make changes to self-assessment tax return forms to require amounts related to crypto assets to be identified separately.

“The tax forms for the tax year 2024-25 will reflect the changes.” Self-assessment tax returns in the United Kingdom are due by January 31 every year. The Government Gateway Service is used by taxpayers in the United Kingdom to file tax records. Cryptocurrency assets must be separately listed under the new rule.

The U.K. Treasury and finance ministers submitted the budget to follow Joe Biden’s annual budget 2024. This budget also included proposed tax policies for cryptocurrency investors.

Biden’s budget aims at eliminating the Section 1031 (also known as the like-kind exchange provision) from the Internal Revenue Code. President Biden’s administration believes closing the loophole will stop the ‘ultra-wealthy exploitation of the like-kind Exchange Provision.