Bitcoin ETF hopefuls beware.
Trade-traded funds backed by the cryptocurrency itself are possible a great distance off after the Securities and Trade Fee’s newest rejection, two market analysts instructed CNBC’s “ETF Edge” on Monday.
The SEC rejected VanEck’s submitting for a bodily bitcoin ETF on Friday, saying it nonetheless lacked confidence that the bitcoin market was freed from manipulation and fraud to approve the product.
Two bitcoin futures ETFs — the ProShares Bitcoin Strategy ETF (BITO) and the Valkyrie Bitcoin Strategy ETF (BTF) — started buying and selling in late October. VanEck’s Bitcoin Technique ETF, the most cost effective such providing but, begins buying and selling Tuesday underneath the ticker XBTF.
After pulling its bitcoin futures ETF utility due to a doable erosion in efficiency, Invesco is now waiting for the pure-play model, Anna Paglia, its head of ETFs and listed methods, mentioned within the Monday interview.
“I hope that 2022 goes to be the yr for that product,” Paglia mentioned, acknowledging that her timeline may very well be “wishful considering.”
“I wasn’t stunned that the SEC rejected the applying final week. Points like value manipulation and fraud haven’t been addressed but. I do suppose that some extra regulation is one thing that the SEC is anticipating earlier than approving the subsequent utility, however I am relying on 2022 because the yr for a pure-play ETF.”
Nonetheless, it might take some time to manage the market to the SEC’s liking, ETF Tendencies’ Dave Nadig mentioned in the identical interview.
“Till we get clear regulation of the underlying coin markets themselves for U.S. buyers, I simply do not suppose we’ll cross that hurdle,” mentioned the agency’s chief funding officer and director of analysis.
“I feel an actual strong bodily bitcoin ETF might be at the least a yr off at this level.”
Within the meantime, buyers ought to train warning with the newly out there bitcoin futures merchandise, he mentioned.
Disclosure: Invesco is the sponsor of CNBC’s “ETF Edge.”