Shark Tank host Kevin O’Leary suggested that the US SEC could take another year and a half to approve a Bitcoin spot ETF. To do this, you need a crypto exchange that fully complies with SEC requirements.

O’Leary Ventures Chairman Kevin O’Leary spoke at the Benzinga Fintech Deal Day & Awards event, discussing the possible approval of cryptocurrency ETFs in the United States. O’Leary believes that for these investment products to appear on the American market, clear rules for regulating cryptocurrencies are needed. Additionally, a fully compliant crypto exchange is needed to confirm prices on the spot market on a daily basis.

O’Leary noted that this exchange could be the Coinbase trading platform, whose shares are traded on NASDAQ. However, the platform is currently in legal proceedings with the US Securities and Exchange Commission (SEC). In June, the regulator accused Coinbase of failing to register as a broker and clearing agency, as well as trading unregistered securities. Coinbase is trying to get the lawsuit dismissed, denying the department’s accusations. However, the SEC insists that Bitcoin alone is not a security.

The Shark Tank star highlighted two obstacles for institutions investing in Bitcoin: SEC compliance and 24-hour trading. He explained that 24/7 Bitcoin trading is problematic for institutional investors because they typically limit their exposure to any asset class to 5%. Stocks are easy to rebalance on a daily basis since markets close at 4:00 p.m.

“I talked a lot with different organizations regarding Bitcoin, and they are all ready to invest in the first cryptocurrency, they are not interested in other tokens. Bitcoin has proven that it is liquid enough that it can be used to store wealth, which is why most people consider it a commodity,” O’Leary said.

The venture capitalist also noted that SEC Chairman Gary Gensler will remain in this position for another 18 months, so it could be more than a year and a half before the Bitcoin spot ETF is approved. O’Leary is confident that when the regulator approves cryptocurrency exchange-traded funds, the demand for BTC will increase sharply.

Previously, the entrepreneur called on cryptocurrency exchanges to cooperate more closely with regulators due to the collapse of the FTX exchange. At the beginning of the year, O’Leary suggested that other cases of crypto company bankruptcies would follow this incident.