- Shark Tank’s Kevin O’Leary warns of an 18-month wait for SEC approval on a spot Bitcoin ETF. Citing the crucial need for a compliant crypto exchange and heightened regulatory clarity.
- Despite Coinbase’s potential as a leading candidate for SEC compliance, legal hurdles persist. Leaving the fate of a spot Bitcoin ETF uncertain.
- O’Leary anticipates increased demand for Bitcoin once SEC Chairman Gensler approves the ETF. Emphasizing the challenges posed by 24/7 trading and the potential for multiple approvals in the coming year.
Renowned Shark Tank investor Kevin O’Leary, also known as Mr. Wonderful, recently addressed concerns over the approval timeline for a spot Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). Speaking at the Benzinga Fintech Deal Day & Awards, O’Leary highlighted a potential delay of up to 18 months before the SEC greenlights a spot Bitcoin ETF.
Regulatory Clarity is Crucial
O’Leary emphasized the necessity for increased regulatory clarity before the SEC considers approving a spot Bitcoin ETF. According to him, such an ETF requires a transparent and compliant crypto exchange to validate spot market pricing daily. Until this condition is met, O’Leary predicts that the SEC will withhold approval.
While O’Leary sees Nasdaq-listed Coinbase as a front-runner for SEC compliance, the exchange currently faces legal challenges from the SEC. Accused of operating as an unregistered securities exchange, broker, and clearing agency. Coinbase is navigating through litigation, maintaining its stance that it does not list crypto securities, except for Bitcoin.
Institutional Hurdles: SEC Compliance and 24/7 Trading
O’Leary highlighted two major hurdles obstructing institutional investment in Bitcoin: SEC compliance and the cryptocurrency’s 24/7 trading nature. He explained how the continuous trading cycle poses challenges for institutional investors. Who traditionally limit exposure to any asset class to 5%. The constant availability of Bitcoin contrasts with stock markets’ daily closure at 4 p.m. ET.
In response to inquiries about private discussions with major institutions regarding Bitcoin, O’Leary revealed that all of them are prepared to invest in BTC. Dismissing the idea of a complex token narrative. He emphasized Bitcoin’s proven liquidity and its role as a storage of wealth, with many considering it a commodity.
Gensler’s Prolonged Chairmanship and Future Predictions
Predicting a prolonged wait for spot Bitcoin ETF approval, O’Leary pointed to SEC Chairman Gary Gensler’s extended tenure for another 18 months. Despite expectations of multiple spot Bitcoin ETF approvals early next year, O’Leary underscored that when the SEC finally gives its nod, demand for Bitcoin is set to soar.
Gensler recently hinted at the SEC considering eight to ten spot Bitcoin ETF applications. Speculations abound regarding the approval of multiple spot Bitcoin ETFs simultaneously, with industry figures like Microstrategy Chairman Michael Saylor anticipating a doubling of BTC demand post-halving and ETF approvals.
In conclusion, Kevin O’Leary’s cautionary insights shed light on the intricate path toward SEC approval for a spot Bitcoin ETF, projecting an extended timeline of up to 18 months. The pivotal role of a compliant crypto exchange, coupled with ongoing legal challenges faced by industry frontrunner Coinbase, underscores the complexity of navigating regulatory landscapes. O’Leary’s anticipation of heightened Bitcoin demand upon SEC approval, despite hurdles like 24/7 trading, positions the cryptocurrency for a transformative phase.
As the industry awaits regulatory decisions, the dynamics surrounding spot Bitcoin ETFs continue to evolve, leaving investors and enthusiasts poised for significant developments in the cryptocurrency landscape.
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