SEC “Running Out of Excuses” to Dismiss Bitcoin ETF: Ric Edelman

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A bitcoin-based exchange-traded fund may finally make its way to investors in 2022, one of the top financial advisers has said.

“I’ve been making this prediction every year for the past seven years. Someday I’ll be right,” Edelman Financial Engines founder Ric Edelman told CNBC’s “ETF Edge” on Monday.

“The reason I hope this will happen if not in 22 and then 2023 is because the SEC is running out of excuses to say no.”

The maturity and innovation of the market have responded to many hesitations from the Securities and Exchange Commission over approving outright bitcoin ETF products, Edelman said.

“One of the big concerns they’ve raised, which President Gensler has raised, is that they can’t control it well enough. Well, they can’t control gold or oil either,” did he declare.

“Without ETFs, consumers go elsewhere, often involved in frauds and other schemes, because they cannot get the product through a financial advisor. The SEC will say yes because they will realize that it is. a step towards consumer protection. “

Edelman expects a third of Americans to own bitcoin by the end of 2022 as cryptocurrency becomes “more and more common.” Currently, about a quarter of Americans own bitcoin, he said.

“A lot more people know this and invest in it than most think. It’s kind of like teenagers buying beer. They do, they just don’t want you to know it,” he said. -he declares.

Industry efforts to allay SEC concerns may finally pay off this year, agreed Bitwise’s Matthew Hougan.

“Ultimately, the cumulative weight of evidence will force them to move forward with an approval,” the company’s chief investment officer said in the same interview. “I really hope we get it this year.”

The SEC may have “got what it wanted” by forcing the digital asset market to mature over the years, but now, “it’s time to overcome the hurdle,” Hougan said.

“It’s time to give US investors the lower cost, better protection and easier access that an ETF can offer,” he said. “We’re getting there. I think we can overcome the hurdle this year.”

Crypto assets have declined significantly in recent weeks, with bitcoin futures ETFs such as the ProShares Bitcoin Strategy (BITO) ETF down 30-40% from their recent highs. The Bitwise 10 Crypto Index Fund (BITW) is down more than 74% from its 52 week high.

The SEC did not immediately respond to CNBC’s request for comment.

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