The Securities and Exchange Commission formally recognized a VanEck bitcoin ETF proposal just two weeks ago, starting the countdown on its 45-day approval schedule.
But seeing a bitcoin ETF approved in the next 30 days isn’t that likely, according to Todd Rosenbluth, head of ETF and mutual fund research at CFRA Research.
The SEC is more likely to extend its schedule, he told CNBC’s “ETF Edge” on Monday.
“We have a number of firms that have gone through the filing process or have filed before, but are waiting for more clarity,” Rosenbluth said. “We think the SEC is less likely to try to pick a winner, as to who comes first and we are more likely to see them, if they approve any ETF, to approve multiple bitcoin-related ETFs. Various companies that have entered and we believe it is. We will likely see one in the next few years, but we don’t have a firm time frame as to when the answer would be yes. “
Grayscale joins the list of potential bitcoin ETF issuers. The investment firm said on Monday that 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 submitted applications.
With so much discussion about bitcoin, some may wonder if it could be incorporated into ETFs like the new VanEck 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 a lot of discussion about bitcoin and other crypto assets and tokens for buyers, but no, you shouldn’t expect to see any crypto on BUZZ,” he said in the same “ETF Edge” interview. “BUZZ is very clearly defined as a large cap US equity exposure by sentiment and would not hold bitcoin or other crypto assets.”
While you won’t find any crypto assets in BUZZ, VanEck’s models track and analyze sentiment around cryptocurrencies, “and we’ll see what happens in the future,” Wise said. “Maybe not in BUZZ. Maybe something else.”
In other areas of the ETF market, there is still a push to incorporate exposure to cryptocurrencies despite regulatory limits.
Art Amador, Co-Founder and COO of EquBot and the man behind the Artificial Intelligence Powered ETF (AIEQ), said that while his fund cannot invest in bitcoin, it is important to enter the crypto ecosystem.
AIEQ does this through small-cap names like 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. “With that said, we are also seeing a lot of regulatory hurdles, not just during the rush, but globally as well.”
Still, expect more increases in the ecosystem as headwinds subside.
The price of bitcoin surged nearly 1.5% on Monday, according to CoinMetrics.