“We think we’ll see one in the next year or two, but we don’t have a definite timeline for when the response will be yes,” Todd Rosenbluth said.
According to a CFRA Research analyst, VanEck, Fidelity Investments, and Valkyrie Digital Assets’ Bitcoin exchange-traded funds, or ETFs, could not be authorised by US regulators for up to two years.
Todd Rosenbluth, head of ETF and mutual fund analysis at CFRA, told CNBC’s ETF Edge host Bob Pisani on Monday that he hoped the U.S. Securities and Exchange Commission, or SEC, would expand the timeframe for considering the Bitcoin ETF first proposed by investment management firm VanEck in January. On March 15, the SEC acknowledged receipt of the Bitcoin ETF submission, granting the regulatory body until April 29 to make a decision or prolong the deadline.
“We’ve got a number of firms that have either gone through the filing process or have previously filed but are waiting for more clarity,” said Rosenbluth. “The SEC is less likely we think to try to pick a winner, as to who comes first and I think we’re more likely to see them — if they do approve an ETF — to approve multiple Bitcoin-related ETFs.”
“We’ve got a number of firms that have entered. We think we’re likely to see one in the coming year or two, but we don’t have a firm timeframe as to when the answer would be yes.”
VanEck and Valkyrie both registered with the SEC in January to form a Bitcoin ETF, with Fidelity following in March. The regulatory body has not indicated what it will decide, but considering its apparent reluctance to approve a crypto ETF previously, many analysts do not anticipate a decision anytime soon.
While the United States has not yet authorised a crypto ETF, Canadian companies have been leading the way in North America. Purpose Investments, headquartered in Toronto, unveiled a Bitcoin ETF in February, and Ninepoint Partners is rumoured to be preparing to convert its Bitcoin trust offering to an exchange-traded fund as well. Both hedge fund manager 3iQ and Evolve Funds Group reported that they had sent a prospectus to Canadian regulators in order to begin trading crypto ETFs.
Following the Fidelity filing last month, Rosenbluth said that it is a matter of “when, not whether, the SEC will accept a Bitcoin ETF.” On Monday, he seemed to say that even the approval of one in the United States could theoretically open the floodgates for companies seeking to shape crypto ETFs.
“If they approve anyone, they’re going to approve everyone,” Pisani said.
164 Interactions, 8 today