According to a CFRA Research analyst, VanEck, Fidelity Investments, and Valkyrie Digital Assets may not see their Bitcoin exchange-traded funds, or ETFs, approved by U.S. regulators for up to two years.
In an interview on UKTN ETF Edge Todd Rosenbluth, head of ETF and mutual fund research at CFRA, told host Bob Pisani on Monday that he believes the US Securities and Exchange Commission, or SEC, will extend the review deadline. Bitcoin ETF first launched by investment management firm VanEck in January. . The SEC officially acknowledged receipt of the Bitcoin ETF application on March 15, giving the regulator until April 29 to make a decision or extend the deadline.
“We have a number of companies that have either gone through the filing process or have already filed but are waiting for more clarity,” Rosenbluth said. “We think the SEC is less likely to try and pick a winner, as to who comes first and I think we’re more likely to see them – if they approve one ETF – approve multiple Bitcoin-related ETFs. “
“We have a number of companies that have entered. We think we’ll probably see one in a year or two, but we don’t have a specific timeline for when the answer would be yes. “
VanEck and Valkyrie both filed SEC registration to form a Bitcoin ETF in January, followed by Fidelity in March. The regulator has given no indication of what it will decide, but given its apparent reluctance to previously approve a crypto ETF, many experts don’t expect a decision soon.
The United States may not have approved a crypto ETF yet, but Canadian companies have led the way in North America. Toronto-based Purpose Investments launched a Bitcoin ETF in February and Ninepoint Partners also plans to change its Bitcoin trust offering to an exchange-traded fund. Investment fund manager 3iQ and Evolve Funds Group have announced that they have filed a prospectus with Canadian regulators for approval to start trading crypto ETFs.
Following Fidelity’s filing last month, Rosenbluth said it was “about when, not if, the SEC will approve a Bitcoin ETF.” He appeared to be hinting on Monday that approving even one in the United States could potentially open the floodgates for companies looking to create crypto ETFs.
“If they approve of someone, they will all approve of it,” Pisani said.