Kevin O’Leary’s Spot Bitcoin ETF Forecast
During the Benzinga Fintech Deal Day & Awards, Shark Tank investor Kevin O’Leary shared insights about the potential approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC).
O’Leary argued that for the SEC to approve a spot bitcoin ETF, there needs to be increased regulatory clarity. He explained that a transparent and compliant crypto exchange is required to confirm daily spot market pricing for a spot bitcoin ETF to be approved. O’Leary predicted:
There’s not going to be any bitcoin ETF until there is an exchange that is compliant with the SEC.
The Shark Tank star pointed out that Coinbase, a Nasdaq-listed cryptocurrency exchange, is the leading candidate for compliance. However, Coinbase is currently facing litigation with the SEC after being charged for operating as an unregistered securities exchange, broker, and clearing agency.
O’Leary highlighted two obstacles to institutions investing in bitcoin: SEC compliance and 24/7 trading. He mentioned that BTC’s 24/7 trading poses challenges for institutional investors due to their 5% exposure limit to any one asset class.
Regarding private discussions he has had with institutions and major organizations about bitcoin, O’Leary revealed that “all of them” are prepared to invest in BTC. “They aren’t interested in the 10,000 token story,” he said.
Prediction on Spot Bitcoin ETF Approval
O’Leary also predicted that it could take another year and a half before a spot bitcoin ETF is approved by the SEC. Although some expect multiple spot bitcoin ETFs to be approved early next year, Mr. Wonderful stressed that when the SEC finally approves a spot bitcoin ETF, demand for BTC will soar.
Hot Take
Spot Bitcoin ETF Approval Could Take Another Year and a Half
After discussing potential spot Bitcoin ETF approval, Kevin O’Leary predicts it could take up to 18 months before one is approved by the U.S. Securities and Exchange Commission (SEC). He emphasized that this will only happen once there’s an exchange compliant with the SEC.
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