The Securities and Exchange Commission officially recognized a bitcoin ETF proposal from VanEck just two weeks ago, starting the countdown to its 45-day approval schedule.
But seeing a bitcoin ETF approved in the next 30 days is not so likely, according to Todd Rosenbluth, head of ETFs and mutual fund research at CFRA Research.
The SEC is more likely to expand its schedule, he told CNBC’s “ETF Edge” on Monday.
“We have a number of companies that have either gone through the filing process or have filed before, but are waiting for more clarity,” Rosenbluth said. “The SEC is less likely to try to pick a winner, we think, as to who comes first, and we’re more likely to see them – if they approve an ETF – to approve more bitcoin-related ETFs. a number of companies have come in and we think we are likely to see one in the next year or two, but we do not have a firm timeline as to when the answer would be yes. “
Joining the list of potential bitcoin ETF issuers is Grayscale. The investment firm said on Monday that it was “100% committed” to turning its Bitcoin Trust in Grayscale into an ETF. VanEck, Fidelity and Valkyrie Digital Assets are among the companies that have already applied.
With so much talk about bitcoin, some might wonder if it could be worked into ETFs, such as VanEck’s new Social Sentiment ETF (BUZZ) because of the popularity of digital currency, but the answer is no, says Jamie Wise , founder of Buzz Indexes.
“There’s a lot of talk about bitcoin and other cryptocurrencies and chips for buyers, but no, you shouldn’t expect to see any crypto in BUZZ,” he said in the same “Edge ETF” interview. “BUZZ is very clearly defined as the exposure of large US capitals depending on sentiment and would not hold bitcoin or other cryptocurrencies.”
While you won’t find cryptocurrencies in BUZZ, VanEck models track and analyze sentiment around cryptocurrencies, “and we’ll see what happens in the future,” Wise said. “Maybe not in BUZZ. Maybe in something else.”
In other areas of the ETF market, there is still pressure to incorporate exposure to encryption, despite regulatory limitations.
Art Amador, co-founder and chief operating officer of EquBot and the man behind the ETF (AIEQ), said that although its fund cannot invest in bitcoin, it is important to enter the crypto ecosystem.
AIEQ does this through small names such as Silvergate Capital, which provides cash management services to digital currency companies, and Marathon Digital Holdings, a cryptocurrency mining company.
“We want investors to have exposure,” Amador said in the same ETGE Edge interview. “That being said, we also see a lot of regulatory winds, not only during speed, but also globally.”
However, it expects further ecosystem growth as downwinds subside.
The price of bitcoin rose almost 1.5% on Monday, according to CoinMetrics.
Disclaimer