By Shelly Melancon (Switzerland)
Amid the buzz and controversy surrounding Bitcoin Exchange-traded funds (ETFs), CEO of Osprey Funds, Greg King has speculated on when likely US Bitcoin ETFs would be approved. According to him, the approval of a Bitcoin ETF by the US Securities and Exchange Commission does not seem possible this year. Osprey Funds is an investment firm offering a Bitcoin Trust ($OBTC to investors, just like Graysacle.
Greg’s Bitcoin ETF comments were made during an interview with Financial news, Yahoo Finance. During the interview, the CEO said that the US SEC had numerous issues to deal with. As such, a Bitcoin ETFs is not on the horizon for 2021.
Bitcoin ETFs Court Controversy in the US
Bitcoin ETFs have courted many speculations and controversies in the US. Besides, the US SEC has not shown any willingness in approving, despite the countless applications submitted by various organizations to the commission since 2017. According to reports, the commission currently has 13 Bitcoin ETFs awaiting approval. It is most likely obvious that the 13 applications may go the same way as the previous ones- into the trash bin.
While the pressure on the commission has been heavy, it has resisted all attempts to convince it otherwise. The sole argument the SEC has presented against cryptocurrency ETFs, generally is that they are quite volatile. Truly, this is a concrete argument, but that is what ETFs seek to reduce- they hedge against volatility, especially for investors whose risk appetites are low.
Also read:Greg King Says Rejection of ETF Applications Contributes to Market Decline
Still speaking, Greg King recalled a plethora of applications that trailed Bitcoin ETFs. He said a handful of organizations including startups approached the US SEC for an ETF approval. Osprey, the principal company of Osprey Trust Funds had also filed an ETF application back in 2017. Furthermore, King argued that a Bitcoin ETF would not be a ‘slam dunk’ this year in view of the body language and comments of the US SEC.
In his argument, King said repeated ETF rejections by the US SEC contributed to the market decline. The market is capitulating to the continuous disapprovals, according to King. The CEO also added the flurry of ETF applications was partially responsible for the April-early May bull trend.
As the back and forth continues for Bitcoin ETFs in the US, Canada has already approved three Bitcoin ETFs, with the first Bitcoin ETF (Purpose Bitcoin ETF) culling $3 million during the dip that immediately followed the April-early May market rally. Last month, South America got its first Bitcoin ETF (QR BTC) listed on Brazilian Stock Exchange. Accordingly, the number of Bitcoin ETFs in the world amounts to 4. Canada is looking to add more crypto ETFs as mote applications have been submitted.
While Greg King is cautiously optimistic about Bitcoin ETFs, CEO of Grayscale, Michael Sonnenshein is strongly positive about US Bitcoin ETFs. Michael reiterated Grayscale’s commitment to converting its Bitcoin Trust to an ETFs while speaking to CNBC on Monday. As an indication of putting its money where its mouth is, it signed a partnership deal with asset management and servicing firm, BNY Mellon last week.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.