David Abner, head of business development at Gemini exchange, suggested that the launch of a Bitcoin ETF in the United States could be approved in early 2022, after the implementation of crypto regulation measures.
David Abner told CNBC that Bitcoin ETFs would be approved in the US in early 2022. In his opinion, by allowing ProShares and Valkyrie to launch ETFs on Bitcoin futures, the US Securities and Exchange Commission (SEC) made it clear that it considers cryptocurrencies to be an asset class. Abner hoped that crypto ETFs would appear in the country later this year, so he was very surprised when the agency rejected VanEck’s application to launch an exchange-traded fund with direct investment in Bitcoin.
“I’m still very bullish,” Abner said. “I think they are just sort of waiting to take that next step. They’re potentially looking for some greater, clearer regulatory guidelines around the industry, so maybe we see that in Q1 and then we see an ETF right after it. I think there’s a little bit of movement in that direction.”
A Gemini spokesman added that the SEC is looking to strengthen the watch over the growing asset class before taking its next step.
However, ETF Trends CEO Tom Lydon isn’t sure this will happen that soon. He noted that for the average asset management firm, the inability to invest in Bitcoin or cryptocurrency ETFs through a brokerage platform is a strong deterrent. This encourages investors to register on cryptocurrency exchanges where they are exposed to an even greater risk of volatility.
“I think this is something that the advisor community is pushing for. I think we’ll eventually see it. I wish it was going to be Q1 but I would say fingers crossed by the end of ’22,” Lydon added.
The top manager of the CFRA research company Todd Rosenbluth said that at the moment, the regulatory authorities do not have any clear legal rules for the prompt decision-making on a financial instrument of this class.
The analyst also suggested that the regulator may postpone the issuance of decisions on applications so that in the future after they fully meet the requirements of the regulatory authorities, they can be approved in one day.
Also, MicroStrategy CEO Michael Sailor recently suggested that Bitcoin ETFs are much more profitable compared to “futures” ETFs. According to Sailor, trillions of dollars will flow into it. Looks like his words are starting to come true.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
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