Todd Rosenbluth, senior director of ETF and mutual fund research at CFRA, told CNBC that crypto-asset investors may have to wait longer for an exchange-traded bitcoin futures (ETF) product.
Speaking on CNBC’s “ETF Edge” on October 12, Rosenbluth stated that a Bitcoin futures ETF is likely to be the first crypto ETF to be approved, but warned that the current gloomy regulatory situation will cause further delays.
He told CNBC:
“We think we’re more likely to see a bitcoin futures ETF first.”
“It’s a timing issue,” Rosenbluth said. “Does it happen in 2021 or does it move to 2022 so all of these products that … could meet the goals actually are approved and can launch at the same time instead of getting a first-mover advantage?”
“It’s possible — in fact, we think it’s likely — that we’re going to see a delay of a bitcoin futures ETF until 2022 until the regulatory environment is more clear.”
Jan van Eck, CEO of Van Eck Associates, commented in the same interview that the SEC’s primary concern is the discrepancy between actual Bitcoin prices and the price of the futures contract, the potential for funds to get too large and push the limits on how many contracts they can own, and the risk of cross-border investment.
“In bitcoin rallies, bitcoin futures strategies can underperform by even up to 20% a year. The SEC wants to have some visibility into the underlying bitcoin markets.”