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