Bitcoin ETF applicants will have to wait longer for an SEC nod, despite the change in leadership. Many exchange-traded fund managers were eager to capitalize on the booming trade scene, but the incoming Securities and Exchange Commission chair, Gary Gensler has highlighted multiple challenges that lie ahead. Greg King, CEO, and founder of Osprey Funds has predicted that many Bitcoin ETFs might be greenlit by 2022.
Bitcoin ETFs Will Have to Wait Two More Years to be Approved
The crypto market had hoped for project approvals to gather speed, with the change of guard at SEC. The incumbent chair, Gary Gensler is known for having taught a class on cryptocurrencies at MIT, a fact that was seen favorably by crypto business owners. But Greg King opines that things are just getting started. During an interview, King said, “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.”
In a testimony before the House of Representative’s subcommittee on financial services, Gensler emphasized the numerous hurdles -- including tax concerns and investor protection -- that prevent the swift approval of Bitcoin ETFs.
Greg King believes that SEC is still in the early stages of deliberating on cryptocurrencies and any developments in the sector will be time-consuming. He states, “Personally, I think if something happens, it’s more likely in 2022. It’s just really getting going. These things take time.”
SEC is Concerned About Issues Surrounding Bitcoin
During the interview, Greg King was joined by Michael Sonnenshein, CEO of Grayscale Investments, the owner of the largest Bitcoin fund GBTC. Grayscale has been working with the SEC since 2016 to address its concerns on crypto investments.
The SEC is currently attempting to navigate issues related to crypto fraud, the potential for manipulation, and questions about custody issues. Gensler has repeatedly hinted that the commission wants to bring the crypto ecosystem under its regulatory authority.
Under current circumstances, the crypto market might be required to travel some distance before it pacifies the authorities. Sonnenshein said, “The industry continues to mature with each passing day, but clearly, even though we are maturing, we’re still not quite there yet.”
Notably, Sonnenshein’s own firm is trying to convert its popular Grayscale Bitcoin Trust(GBTC) into an ETF. According to the Grayscale chief, the company will move ahead with its offering “when the regulatory environment is ready to have it.”