Cryptocurrency investors may have to wait longer for an exchange traded Bitcoin futures productsaid Todd Rosenbluth, senior director for ETF and mutual fund research at research firm CFRA.
Speaking of “ETF Edge” from CNBC on October 12th, Rosenbluth stated that a Bitcoin futures product will likely be the first cryptocurrency ETF to gain approval, but warned that the current opaque regulatory situation could lead to further delays..
There are over 20 crypto-asset-based exchange-traded products pending approval from the Securities and Exchange Commission, and the regulator has yet to approve some; on the contrary, he kicked the can several times.
The researcher suggested that Regulators could wait for all of these products to achieve their goals in order to get them approved at the same time, avoiding a “first-first benefit”.before adding:
“It is possible – we even consider it likely – that we will see a Bitcoin futures ETF postponed until 2022, until the regulatory environment is clearer.”
Jan van Eck, CEO of Van Eck Associates, commented on that The SEC’s main concern is the discrepancy between actual Bitcoin prices and the futures contract price, as well as the possibility that funds are too large.
When there is a bitcoin rally, futures strategies can underperform up to 20% per year, stated before adding that “the SEC wants some visibility into the underlying Bitcoin markets.”
Van Eck also suggested that the regulator need to gain more control over trading in cryptocurrencies, which it appears to be trying to do with its recent threats to Coinbase and the exchange’s stablecoin loan product. Other popular trading platforms like Robinhood are already regulated and registered as stockbrokers.
Any speculation about a possible delay could hurt the price of Bitcoin, as analysts suggested that large investors could buy BTC pending ETF approval this month.. The asset is up 37.5% in the past 15 days, hitting a local high of $ 58,000 on October 12, but further regulatory delays could end the current market momentum.
Bloomberg’s senior ETF analyst, Eric Balchunas, remains confident that the chance of an ETF getting approved this month is 75%.
Earlier this month, the SEC extended the terms of four BTC ETFs -the Global X Bitcoin Trust, the Valkyrie XBTO Bitcoin Futures Fund, the WisdomTree Bitcoin Trust and the Kryptoin Bitcoin ETF- for 45 days.
In September, Van Eck’s physically deposited Bitcoin ETF was postponed for the second time this year; has a ruling date of November 14th from the SEC.