Kevin O'Leary Warns Spot Bitcoin ETF Approval Could Be 18 Months Away

Shark Tank investor Kevin O’Leary, aka Mr. Wonderful, has cautioned that it could take another year and a half for the U.S. Securities and Exchange Commission (SEC) to approve a spot bitcoin exchange-traded fund (ETF). He emphasized that we will not see a spot bitcoin ETF in the U.S. until there is a crypto exchange that’s compliant with the SEC.

Kevin O’Leary’s Spot Bitcoin ETF Prediction

Shark Tank investor Kevin O’Leary, the chairman of O’Leary Ventures, discussed the potential approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) at the Benzinga Fintech Deal Day & Awards on Monday.

O’Leary believes that increased regulatory clarity is necessary for the SEC to approve a spot bitcoin ETF. He explained that a spot bitcoin ETF needs a transparent and compliant crypto exchange to confirm the spot market pricing daily, emphasizing that the SEC will not approve one until there is such an exchange. He 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 noted that the Nasdaq-listed cryptocurrency exchange Coinbase (Nasdaq: COIN) is the leading candidate for compliance. However, the crypto trading platform is currently in litigation with the SEC. The securities regulator charged Coinbase in June for operating as an unregistered securities exchange, broker, and clearing agency. Coinbase has been trying to get the lawsuit dismissed, insisting that it does not list crypto securities. However, the SEC told the exchange that everything other than bitcoin is a security.

Mr. Wonderful highlighted two hurdles to institutions investing in bitcoin: SEC compliance and 24/7 trading. He explained that BTC’s 24/7 trading poses challenges for institutional investors, as they typically limit their exposure to any one asset class to 5%. With stocks, it’s easy to rebalance daily because the markets close at 4 p.m.#newcrypto #newupdate #BinanceSquareCryptoMindsWeb3 #xrp