Bitcoin ETF hopefuls probably 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 positive 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 might 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 type of studying into it [like] that signifies 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 feel if one thing occurs, it is extra probably in 2022. It is simply actually getting going. These items take time,” King mentioned.
The actual fact stays that the SEC’s most important issues 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, regardless that we’re maturing, we’re nonetheless not fairly there but,” mentioned 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 mentioned.
He added that he’s “100% dedicated” to changing his agency’s fashionable Grayscale Bitcoin Trust (GBTC) to an ETF “when the regulatory setting 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 might have been a hurdle for them. These days, that is not the sort of pushback that we get,” Sonnenshein mentioned. “And so, I feel as time goes on, you may see a maturation … that can give regulators elevated consolation with the asset class.”
Disclosure: King and Osprey Funds personal bitcoin. Grayscale Investments owns bitcoin.