Uncertainty in the regulation of the cryptocurrency industry could delay the adoption of Bitcoin ETFs, said Todd Rosenbluth, director of research for ETFs and CFRA mutual funds.
Speaking Tuesday on CNBC on ETF Edge, the expert said regulators would first
approve a futures ETF for bitcoin, and only then for the cryptocurrency itself. But the current foggy situation with cryptocurrency regulation could postpone regulatory approval indefinitely.
There are already more than 20 exchange-traded cryptocurrency funds on the market, which are awaiting approval from the US Securities and Exchange Commission (SEC), Rosenbluth said. The regulator has not yet accepted a single one. According to the assumption, the SEC analyst expects when all products will meet the requirements of the regulator. This will allow them to be adopted at the same time so that none of the companies receive the “first mover advantage”.
“We think the crypto community is likely to face a postponement of the Bitcoin ETF decision to 2022 when the regulatory environment becomes clearer.”
Jan van Eck, CEO of asset management company Van Eck Associates, clarified that the main problem for the SEC is the discrepancy between the actual price of bitcoin and the price of futures. Regulators are worried about the high likelihood of a rapid rise in the bitcoin rate, which the futures strategy will not be able to keep up with.
After the SEC approved the launch of the Volt Bitcoin Revolution ETF, which includes shares of about 30 companies with large investments in bitcoin, WisdomTree Investments CEO Jonathan Steinberg believes that the SEC will inevitably approve the Bitcoin ETF, and this will happen soon. At the same time, the head of Pantera Capital Dan Morehead fears that, despite the growth of bitcoin, the launch of the ETF on bitcoin could bring down its value, as it did four years ago with BTC futures.