Bitcoin ETF hopefuls will likely have to wait a little longer.
The first exchange-traded fund based on the flagship cryptocurrency may not be approved for another two years, although many have found it cheap Changing of the guard at the Securities and Exchange Commission, Osprey Funds founder and CEO Greg King told CNBC on Monday.
New SEC chairman Gary Gensler may have taught a class on crypto at MIT, but that doesn’t mean a Bitcoin-based fund will get approval right away, King told CNBC “ETF Edge.”
“People kind of read into it [like] That means there will be the green light for a Bitcoin ETF. We’re not so sure if that’s the case, “said King, who wants to convert Ospreys Bitcoin Trust Convert (OBTC) to an ETF when the time is right.
“Personally, I think if something happens, it’s more likely in 2022. It’s just getting started. These things take time, ”said King.
The fact remains that the SEC’s primary concerns about Bitcoin – the potential for fraud, tampering, and custody – have not gone, said Michael Sonnenshein, CEO of Grayscale Investments, in the same “ETF Edge” interview.
“The industry is maturing every day, but although we are becoming more mature, we are not quite there,” said Sonnenshein, whose company has been working with the SEC since 2016 to allay their concerns.
With regulators so heavily involved in the process, it seems like only a matter of time before a Bitcoin ETF sees the light of day, Sonnenshein said.
He added that he was “100% committed” to converting his company’s popularity Grayscale Bitcoin Trust (GBTC) to an ETF “when the regulatory environment is ready”.
“The institutes that are now investing in us would not have thought of it two or three years ago when regulatory uncertainty could have been a hurdle for them. Today this is not the kind of pushback we are getting,” said Sonnenshein. “And I think over time you will see a maturation … that will make regulators more comfortable with the asset class.”
Disclosure: King and Osprey Funds own Bitcoin. Grayscale Investments owns Bitcoin.