Receiving “no news is good news” for the approval of a bitcoin (BTC) futures-backed exchange-traded fund (ETF), according to Bloomberg’s ETF analyst. However, others are more pessimistic, believing that the US Securities and Exchange Commission (SEC) is likely to delay the approval of a bitcoin ETF until 2022.
Speaking on CNBC on Monday, Todd Rosenbluth, senior director of ETF and mutual fund research at investment research firm CFRA, said that hopeful investors may still have to wait for a while before a bitcoin ETF will be approved, even if the ETF is backed by futures contracts rather than “physical” bitcoins.
The ETF researcher continued by saying that a potential approval comes down to “a timing issue,” explaining that if the decisions on the ETF proposals are moved to 2022, all of the products “can launch at the same time instead of [one] getting a first-mover advantage.”
In the same interview, ETF issuer Van Eck Associates CEO Jan van Eck also noted that the SEC’s main concern is that discrepancy will occur between bitcoin spot and futures prices.
“In bitcoin rallies, bitcoin futures strategies can underperform by even up to 20% a year,” van Eck explained while adding that the SEC wants “some visibility into the underlying bitcoin markets.”
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