The Securities and Exchange Commission formally acknowledged a bitcoin ETF proposal from VanEck just two weeks ago, which began the countdown on the 45-day approval timeline.
But seeing a bitcoin ETF approved in the next 30 days isn’t all that likely, according to Todd Rosenbluth, head of ETF and mutual fund research at CFRA Research.
It is more likely that the SEC will extend its timeline, he told CNBC’s “ETF Edge” Monday.
“We have a number of firms that have gone through the filing process or have previously filed, but are waiting for more clarity,” said Rosenbluth. “The SEC will be less likely to try to pick a winner, we think, in terms of who comes first and we are more likely to see them – if they approve an ETF – approve multiple bitcoin-related ETFs. who signed up and we think we’ll probably see one in the next two years, but we don’t have a set timetable for when the answer would be yes. ”
Joining the list of potential bitcoin ETF issuers is Grayscale. The investment firm said Monday it was “100% committed” to converting its Grayscale Bitcoin Trust into an ETF. VanEck, Fidelity and Valkyrie Digital Assets are among the companies that have already applied.
With so much debate about bitcoin, some might wonder if it can be incorporated into ETFs like VanEck’s new Social Sentiment ETF (BUZZ) due to the popularity of the digital currency, but the answer is no, says Jamie Wise, founder of Buzz Indexes.
“There is an awful lot of discussion about bitcoin and other crypto assets and tokens for buyers, but no, you shouldn’t expect to see a crypto in BUZZ,” he said in the same “ETF Edge” interview. “BUZZ is very clearly defined as exposure to large-capitalized US stocks by sentiment and would not hold bitcoin or other crypto assets.”
While you won’t find crypto assets in BUZZ, VanEck’s models do track and analyze sentiment around cryptocurrencies, “and we’ll see what happens in the future,” Wise said. ‘Maybe not in BUZZ. Maybe in something else. ‘
In other parts of the ETF market, despite legal limits, there is still a push to include crypto exposure.
Art Amador, EquBot’s co-founder and chief operating officer and the man behind the Artificial Intelligence Powered ETF (AIEQ), said that while his fund can’t invest in bitcoin, getting into the crypto ecosystem is important.
AIEQ does this through small cap names such as Silvergate Capital, which provides cash management services to digital currency companies, and Marathon Digital Holdings, a cryptocurrency mining company.
“We want investors to have exposure,” Amador said in the same “ETF Edge” interview. “That said, we are also seeing a lot of regulatory headwinds, not just during rush hour, but also globally.”
Still, he expects a further increase in the ecosystem as the headwinds subside.
Bitcoin’s price is up nearly 1.5% Monday, according to CoinMetrics.
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