Osprey Funds CEO says US will approve Bitcoin ETF in 2022 ‘at earliest’

The CEO of Osprey Funds — the issuer of over-the-counter Bitcoin belief OBTC —isn’t holding his breath for a Bitcoin (BTC) exchange-traded fund (ETF) approval in the US this yr.

Chatting with Yahoo Finance’s Jared Blikre and Seana Smith on July 19, Greg King mentioned he believes that the U.S. Securities and Alternate Fee (SEC) below the management of Gary Gensler has so many issues on its plate in 2021 {that a} BTC ETF approval is unlikely to make the lower.

King recalled the hype within the crypto trade surrounding Gensler’s appointment, who, whereas pretty noncommittal in his statements about crypto regulation so far, is nonetheless well-known for his work educating programs on blockchain on the Massachusetts Institute of Know-how in recent times. 

“You noticed a flurry of filings, from established firms to form of newcomers, chasing that Bitcoin ETF concept,” mentioned King. The CEO has himself been in dialog with SEC workers for a number of years, as Osprey — the mum or dad agency of Osprey Funds — had filed for its personal Bitcoin ETF again in 2017. King argued:

“If a Bitcoin ETF is coming by way of the Gensler administration, my view is it is not going to occur this yr […] There’s additionally been fairly a little bit of form of a physique of language and rhetoric and factors which have been made by the workers with earlier functions that have to be addressed. And so this is not a slam dunk.”

Dissatisfied expectations of a “slam dunk” might, furthermore, have performed a job out there’s correction this summer time, with King claiming that the “market’s partially calibrating” to those frustrations.

Whereas for King, the excessive variety of Bitcoin ETF functions within the U.S. earlier within the yr fed into Bitcoin’s extraordinary 2021 bull run, with their stalling later contributing to a downturn, he additionally added that current hawkish regulatory remarks within the U.S. relating to non-public stablecoins has not been “significantly useful for Bitcoin or Ethereum.”

This week, U.S. Treasury Secretary Janet Yellen has informed members of the President’s Working Group on Monetary Markets — a.okay.a the “Plunge Safety Crew” — that the federal government should act shortly to determine a regulatory framework for stablecoins. Earlier this yr, Yellen had additionally warned that the abuse of crypto has been an ever-growing downside.

Over on the Federal Reserve, Jerome Powell has echoed Yellen’s calls, saying that if stablecoins are “going to be a major a part of the funds universe, then we want an applicable regulatory framework which, frankly, we don’t have.”

Associated: Grayscale ‘100% dedicated’ to turning GBTC into Bitcoin ETF — CEO

Taking a look at this panorama — and provided that crypto ETFs have already been authorized in Canada, Europe and different jurisdictions — King mentioned that the U.S. is “decidedly behind” however that “that is clearly by alternative”:

“I believe they’re desirous about this, if I needed to guess, extra holistically, past simply whether or not a Bitcoin ETF is smart or not at this level, however actually, extra alongside the traces of what precedent are we going to set after we approve one.”