Bitcoin backers could have longer to attend for an exchange-traded fund immediately tied to the cryptocurrency or its futures contracts, CFRA Analysis’s Todd Rosenbluth instructed CNBC’s “ETF Edge” on Monday.
The worth of bitcoin has climbed 35% within the final two weeks as traders grew optimistic in regards to the Securities and Alternate Fee’s plans for the quite a few bitcoin ETF purposes at the moment underneath its overview.
Greater than a dozen corporations are nonetheless ready to listen to whether or not their respective filings for bitcoin-based ETFs will progress to the general public markets. Others, together with VanEck, Invesco, Amplify ETFs and International X, have launched tangential merchandise targeted on blockchain infrastructure or the broader cryptocurrency economic system.
“We predict we’re extra prone to see a bitcoin futures ETF first,” mentioned Rosenbluth, senior director of ETF and mutual fund analysis at CFRA.
VanEck, ProShares, Invesco, Valkyrie and Galaxy Digital have all filed for bitcoin futures ETFs. The primary 4 may very well be permitted, denied or have their selections delayed by mid- to late October; Galaxy Digital’s destiny might be revealed by Nov. 1.
“It is a timing situation,” Rosenbluth mentioned. “Does it occur in 2021 or does it transfer to 2022 so all of those merchandise that … may meet the objectives really are permitted and might launch on the identical time as a substitute of getting a first-mover benefit?”
“It is attainable — in truth, we expect it is probably — that we’ll see a delay of a bitcoin futures ETF till 2022, till the regulatory setting is extra clear,” he mentioned.
The SEC is principally involved in regards to the potential for discrepancies between bitcoin and futures costs, the potential for funds to get too massive and push the bounds on what number of contracts they will personal, and the danger of cross-border funding, Van Eck Associates CEO Jan van Eck mentioned in the identical interview.
“In bitcoin rallies, bitcoin futures methods can underperform by even as much as 20% a 12 months,” van Eck mentioned. “The SEC needs to have some visibility into the underlying bitcoin markets.”
As for regulatory management, the SEC already wields it in a number of methods with regards to cryptocurrency buying and selling, van Eck mentioned.
Robinhood, which gives crypto buying and selling, falls underneath the SEC’s jurisdiction as a result of it’s registered as a broker-dealer, van Eck mentioned. The SEC additionally could have achieved “de facto regulatory management” over Coinbase, which stopped providing a lending product a number of weeks in the past on the fee’s request, he mentioned.
That would assist the bitcoin futures ETF’s possibilities, however it’s unclear by how a lot, the CEO mentioned.
“They clearly have some management over gamers within the underlying bitcoin markets, so perhaps that will increase the possibilities from zero, however I do not know what they’re,” he mentioned.
Along with the mushy Oct. 25 approval deadline for VanEck’s bitcoin futures ETF submitting, the SEC has a tough Nov. 14 deadline to approve or deny VanEck’s proposal for an ETF based mostly on bodily bitcoin.
Disclosure: Invesco is the sponsor of CNBC’s “ETF Edge.”