Bitcoin ETF hopefuls likely have somewhat longer to attend.
The first exchange-traded fund based mostly on the flagship cryptocurrency might not see approval for one more two years regardless of what many noticed as a good changing of the guard on the Securities and Exchange Commission, 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.”
“People are sort of reading into it [like] that means that there’s going to be green lights for a bitcoin ETF. We’re not so sure that’s the case,” stated King, who plans to transform Osprey’s Bitcoin Trust (OBTC) to an ETF when the time is proper.
“Personally, I think if something happens, it’s more likely in 2022. It’s just really getting going. These things take time,” King stated.
The reality stays that the SEC’s principal considerations 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 industry continues to mature with each passing day, but clearly, even though we are maturing, we’re still not quite there yet,” stated Sonnenshein, whose agency has been working with the SEC on addressing its considerations since 2016.
With regulators so engaged in the method, 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 is “100% committed” to changing his agency’s widespread Grayscale Bitcoin Trust (GBTC) to an ETF “when the regulatory environment is ready to have it.”
“The institutions that now invest with us would not have thought about this two, three years ago when regulatory uncertainty may have been a hurdle for them. Nowadays, that’s not the kind of pushback that we get,” Sonnenshein stated. “And so, I think as time goes on, you’ll see a maturation … that will give regulators increased comfort with the asset class.”
Disclosure: King and Osprey Funds personal bitcoin. Grayscale Investments owns bitcoin.