Bitcoin ETF hopefuls probably have slightly longer to attend.
The primary exchange-traded fund based mostly on the flagship cryptocurrency could not see approval for an additional two years regardless of what many noticed as a good changing of the guard on the Securities and Trade Fee, Osprey Funds founder and CEO Greg King instructed CNBC on Monday.
New SEC Chair Gary Gensler could have taught a category on crypto at MIT, however that does not imply a bitcoin-based fund will instantly obtain approval, King instructed CNBC’s “ETF Edge.”
“Individuals are form of studying into it [like] that signifies that there’s going to be inexperienced lights for a bitcoin ETF. We’re not so positive that is the case,” stated King, who plans to transform Osprey’s Bitcoin Trust (OBTC) to an ETF when the time is true.
“Personally, I believe if one thing occurs, it is extra probably in 2022. It is simply actually getting going. These items take time,” King stated.
The very fact stays that the SEC’s fundamental issues round bitcoin — the potential for fraud, manipulation and custody points — have not gone away, Grayscale Investments CEO Michael Sonnenshein stated in the identical “ETF Edge” interview.
“The trade continues to mature with every passing day, however clearly, although we’re maturing, we’re nonetheless not fairly there but,” stated Sonnenshein, whose agency has been working with the SEC on addressing its issues since 2016.
With regulators so engaged within the course of, it seems to solely be a matter of time earlier than a bitcoin ETF sees the sunshine of day, Sonnenshein stated.
He added that he’s “100% dedicated” to changing his agency’s well-liked Grayscale Bitcoin Trust (GBTC) to an ETF “when the regulatory atmosphere is able to have it.”
“The establishments that now make investments with us wouldn’t have thought of this two, three years in the past when regulatory uncertainty could have been a hurdle for them. These days, that is not the form of pushback that we get,” Sonnenshein stated. “And so, I believe as time goes on, you may see a maturation … that may give regulators elevated consolation with the asset class.”
Disclosure: King and Osprey Funds personal bitcoin. Grayscale Investments owns bitcoin.