Bitcoin ETF approval unlikely before 2022 or later: market analyst

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Beware of Bitcoin ETF’s Hopes.

Exchange-traded funds backed by the cryptocurrency itself are likely a far cry from the latest rejection from the Securities and Exchange Commission, two market analysts told CNBC’s “ETF Edge” on Monday.

The SEC on Friday rejected VanEck’s request for a physical bitcoin ETF, saying it still lacks confidence that the bitcoin market is free from manipulation and fraud to endorse the product.

Two bitcoin futures ETFs – the ProShares Bitcoin Strategy (BITO) ETF and the Valkyrie Bitcoin Strategy (BTF) ETF – began trading in late October. VanEck’s Bitcoin Strategy ETF, the cheapest offering to date, starts trading on Tuesday under the ticker XBTF.

After withdrawing its bitcoin futures ETF application due to possible performance erosion, Invesco is now considering the pure-play version, Anna Paglia, its head of ETFs and indexed strategies, said in Monday’s interview. .

“Hopefully 2022 will be the year of this product,” Paglia said, acknowledging her timeline could be “wishful thinking.”

“I was not surprised that the SEC rejected the request last week. Issues such as price manipulation and fraud have yet to be addressed. I think further regulation is something the SEC is waiting before approving the next application, but I’m ‘I’m counting on 2022 as the year for a pure-play ETF.’

However, it could take some time to regulate the market at the discretion of the SEC, ETF Trends’ Dave Nadig said in the same interview.

“Until we get clear regulation of the underlying coin markets themselves for US investors, I just don’t think we’re going to get past this hurdle,” said the chief investment officer and chief investment officer. company research.

“I think a strong physical bitcoin ETF is probably at least a year behind at this point.”

In the meantime, investors should be cautious with the new Bitcoin futures products available, he said.

Disclosure: Invesco is the sponsor of CNBC’s “ETF Edge”.

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