The massive cryptocurrency boom during the latter half of 2020 and the first half of 2021, along with a wave of institutional appetite betting billions of dollars on the growth of the crypto ecosystem, all helped raise optimistic expectations regarding the approval of the Bitcoin ETF in the USA.

But one former (unsuccessful) bitcoin ETF applicant said he thinks the odds of that happening are closer than ever.

Waiting for Bitcoin ETF Approval:

According to William Kaye, co-founder of Wilshire Phoenix, the SEC does not intend to approve a crypto ETF anytime soon, despite pressure from prominent investors, businessmen and even influential politicians.

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Speaking with “interested in trade” William commented that his expectation of approval would be around 2022 or even 2023.

He also believes that despite the current wave of new ETF orders, none of them are likely to succeed, telling:

I think they will all falter…I haven’t seen anything to indicate a change in their thinking (ie the SEC).

According for a website Tracking ETFs, there are currently 8 Bitcoin ETF applications lobbying for a response from the SEC.

Parties interested in ETFs range from old players like VanEck – who is among the first to apply for approval.

Even the popular “Grayscale Bitcoin Trust” which is the closest thing to a bitcoin ETF currently available to US traders could convert into a bitcoin ETF if conditions are right.

Michael Sonnenchin, CEO of Grayscale, thinks it’s only a matter of time.

The Securities and Exchange Commission has other priorities:

Despite the growing interest in the crypto business, efforts to get an approved Bitcoin ETF have been unsuccessful.

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The reason, Kay explains, is that the SEC is concerned about potential market manipulation scenarios due to high volatility, low trading volume, and a lack of clear regulations. Kay stated:

The main thing is manipulation, as they see that the crypto market is unregulated and does not trade on regulated trading platforms.

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Kay also explains that not much has changed between Jay Clayton’s tenure and the current administration of Gary Gensler.

Kay explained that the Bitcoin ETF is not really a priority for Gensler, which is focused on protecting investors and regulating markets such as meme coins, Robinhood and the like…

He told Kay that he’s not entirely pessimistic, admitting that he hopes that at some point, some applicants will be able to satisfy the SEC. He comments:

We believe the Bitcoin ETF is good for the market, and it will.

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