If the US SEC approves one Bitcoin ETF, it will likely approve several, according to an analyst at CFRA Research. But when will that be?
April 8, 2021 | AtoZ Markets – According to an analyst with CFRA Research, VanEck, Fidelity Investments and Valkyrie Digital Assets bitcoin exchange-traded funds (ETFs) may not be approved by US regulators for two years.
In an interview on CNBC’s ETF Edge Monday, Todd Rosenbluth, CFRA’s director of ETF and mutual fund research, spoke to host Bob Pisani. He believes the US Securities and Exchange Commission (SEC) would extend the deadline for reviewing the Bitcoin ETF, which was filed by investment management firm VanEck in January.
The SEC officially confirmed receipt of the Bitcoin ETF application on March 15 and set a deadline of April 29. Until then, a decision should be made or the deadline extended.
“We have several companies that have either gone through the registration process or have already submitted an application and are waiting for more clarity,” said Rosenbluth. “We think the SEC is less likely to want to choose a winner. I think we’re more likely to see that if they approve one ETF, they’ll approve multiple Bitcoin ETFs.”
“We have several companies here that have signed up. We think it’s likely that we’ll see a permit in the next year or two. But we don’t have a set time frame for when that will happen.”
VanEck and Valkyrie both filed an application with the SEC for a Bitcoin ETF in January. Fidelity followed in March. The regulator made no suggestion how it will decide. But given their reluctance to approve crypto ETFs in the past, many experts don’t expect a decision anytime soon.
While the US has not yet approved a crypto ETF, Canadian firms have already seen success in North America.
For example, Toronto-based Purpose Investments launched a Bitcoin ETF in February and Ninepoint Partners plans to convert its Bitcoin trust offering into an exchange-traded fund as well. Mutual fund manager 3iQ and Evolve Funds Group announced that they have filed a prospectus with Canadian regulators to trade crypto ETFs.
Following last month’s Fidelity filing, Rosenbluth said it was “just a matter of time before the SEC will approve a Bitcoin ETF”. On Monday, he said that approving an ETF in the United States could potentially open the doors for companies looking to launch crypto ETFs.
“If they approve one, they’ll approve all,” Pisani said.
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