According to one cryptocurrency executive, a pure-play bitcoin exchange-traded fund may not be as far away as some believe.
The Securities and Exchange Commission signalling this week that it is embracing cryptocurrency as an investable asset class by approving three bitcoin futures ETFs, Gemini’s David Abner told CNBC’s “ETF Edge.”
“The SEC is taking these progressive steps to move us forwards,” said Abner, who is the crypto exchange’s global head of business development.
“I thought we’d be there by the end of the year,” he said, adding that he was surprised by the SEC’s rejection of VanEck’s bid for a physical bitcoin ETF.
“I’m still extremely optimistic,” Abner stated. “I believe they are simply awaiting the opportunity to take the next step. They may be looking for stronger, more transparent regulatory guidelines throughout the industry, so we may see that in Q1 and then an ETF shortly thereafter. I believe there has been some movement in that direction.”
Tom Lydon, CEO of ETF Trends, expressed less optimism about the SEC’s timeline but highlighted several catalysts that could benefit hopeful ETF providers.
“For the average advisor managing a diversified portfolio on behalf of their clients, the inability to purchase bitcoin or a spot bitcoin ETF on a brokerage platform is a bit of a handcuff,” he said in the same interview.
“If your clients go rogue and open a Coinbase account, they may be shooting themselves in the foot in terms of volatility,” he explained.
With many forecasting a price of $100,000 for bitcoin in 2022, “glowing demand” could give way to increased calls for bitcoin-tracking ETFs, Lydon said.
“I believe that this is a goal that the advisor community is pursuing. I believe we will see it eventually. I wish it would be in Q1, but fingers crossed for the end of ’22,” he said.