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47206
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2021-10-13

Delay in BTC-related project

Investors in crypto assets may have to wait longer for a Bitcoin futures exchange-traded product, according to Todd Rosenbluth, senior director of ETF and mutual fund research at research firm CFRA.

 

Speaking on CNBC's "ETF Edge" on Oct. 12, Rosenbluth said that while a bitcoin futures product will likely be the first crypto ETF to gain approval, he warned that the current unclear regulatory situation could cause further delays.

 

"It is possible - in fact, we think it is likely - that we will see a delay of Bitcoin futures ETFs until 2022 until the regulatory environment is clearer."

Van Eck Associates CEO Jan van Eck commented that the SEC's main concern is the discrepancy between actual bitcoin prices and the futures price, as well as the potential for oversized funds.

 

When a bitcoin rally occurs, futures strategies can underperform by as much as 20% per year, he said before adding "the SEC wants some insight into the underlying bitcoin markets."

 

Van Eck also suggested that the regulator needs to get more control over crypto trading, which appears to be rehearsing with its recent threats to Coinbase and the Exchange's stablecoin credit product. Other popular trading platforms, such as Robinhood, are already regulated and registered as broker-dealers.