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

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The CEO of Osprey Funds — the issuer of over-the-counter Bitcoin trust 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 said he believes that the U.S. Securities and Trade Fee (SEC) underneath the management of Gary Gensler has so many issues on its plate in 2021 {that a} BTC ETF approval is unlikely to make the minimize.

King recalled the hype within the crypto business surrounding Gensler’s appointment, who, whereas pretty noncommittal in his statements about crypto regulation up to now, is nonetheless well-known for his work teaching courses on blockchain on the Massachusetts Institute of Expertise lately. 

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

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

Disillusioned expectations of a “slam dunk” could, furthermore, have performed a job available in the market’s correction this summer season, with King claiming that the “market’s partially calibrating” to those frustrations.

Whereas for King, the excessive variety of Bitcoin ETF purposes 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 latest hawkish regulatory remarks within the U.S. relating to personal stablecoins has not been “notably 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.ok.a the “Plunge Safety Workforce” — that the federal government should act shortly to ascertain a regulatory framework for stablecoins. Earlier this yr, Yellen had additionally warned that the abuse of crypto has been an ever-growing problem.

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’d like an acceptable regulatory framework which, frankly, we don’t have.”

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

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

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