Kevin O’Leary’s Insights on Bitcoin ETF Approval Timeline
Kevin O’Leary, also known as “Mr. Wonderful,” is a prominent Canadian entrepreneur and investor, widely recognized for his role on the reality TV show “Shark Tank.” He recently shared insights on the timeline for the approval of a spot Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC).
According to a report by Kevin Helms for Bitcoin.com News, O’Leary suggested that the approval could be more than 18 months away, emphasizing the need for a compliant crypto exchange for this to happen.
Regulatory Clarity and Compliance
O’Leary stressed the importance of regulatory clarity and compliance for the SEC to greenlight a spot Bitcoin ETF. He pointed out that the SEC requires a transparent and compliant crypto exchange to verify the spot market pricing daily. According to O’Leary, the absence of such an exchange is a significant barrier to the approval of a spot Bitcoin ETF.
He mentioned Coinbase, a Nasdaq-listed cryptocurrency exchange, as a leading candidate for achieving compliance. However, Coinbase is currently embroiled in litigation with the SEC, which has charged it with operating as an unregistered securities exchange, broker, and clearing agency.
Hurdles for Institutional Investment in Bitcoin
O’Leary highlighted two major hurdles for institutional investment in Bitcoin: SEC compliance and the 24/7 trading nature of Bitcoin. He explained that the continuous trading of Bitcoin presents challenges for institutional investors who typically limit their exposure to any one asset class to 5%.
Despite these challenges, O’Leary revealed that major institutions and organizations are ready to invest in Bitcoin, valuing its liquidity and status as a storage of wealth. He noted that these institutions are less interested in the broader array of cryptocurrencies, focusing instead on Bitcoin.
Future Outlook
With SEC Chairman Gary Gensler set to remain in his position for another 18 months, O’Leary anticipates that the approval of a spot Bitcoin ETF could align with the end of Gensler’s current term.
Hot Take: The Impact of SEC Approval on Bitcoin Demand
O’Leary concluded by emphasizing the significant impact that SEC approval of a spot Bitcoin ETF would have on Bitcoin demand. He echoed the sentiments of Microstrategy Chairman Michael Saylor, who expects Bitcoin demand to double following the halving and the approval of spot Bitcoin ETFs.
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