According to Todd Rosenbluth, senior director of ETF and mutual fund research at research firm CFRA, crypto-active investors can wait longer for a commodity to be traded on the bitcoin futures exchange.
Speaking on CNBC’s Oct 12 ETF Edge, Rosenbluth said that while the bitcoin futures product is likely to be the first crypto ETF to receive approval, he warned that the current cloud computing regulation could lead to further delays.
There are over 20 exchange-traded cryptoasset-based products awaiting SEC approval, and the regulator has yet to accept any of them, instead putting it aside several times.
The researcher suggested that regulators could wait for all of these products to reach their targets so that they can be approved at the same time to avoid “first-mover advantage” before adding:
“It is possible – in fact, we think it is likely – that we will see a delay in Bitcoin futures ETFs by 2022 until the regulatory environment becomes clearer.”
Van Eck Associates CEO Jan van Eyck commented that the SEC’s biggest concern is the discrepancy between actual bitcoin prices and the price of futures contracts, as well as the possibility of a significant increase in funds.
When bitcoin rallies, futures strategies can yield less than 20% per annum, he said before adding, “The SEC wants to gain insight into the underlying bitcoin markets.
Van Eck also suggested that the regulator needs more control over the cryptocurrency, which appears to be struggling to cope with its recent threats to Coinbase and the stock exchange’s stablecoin lending product. Other popular trading platforms like Robinhood are already regulated and registered as brokers and dealers.
Related: Does Keith Offer Approval for Bitcoin Futures ETFs?
Any speculation about a possible delay could hit the bitcoin price as analysts suggested large investors could buy bitcoin pending ETF approval this month. Assets are up 37.5% over the past two weeks and hit a local high of $ 58,000 on October 12, but a further increase in regulatory requirements could weaken the current market momentum.
Eric Balchonas, chief analyst at Bloomberg ETF, remains confident that the ETF has a 75% chance of approval this month.
Earlier this month, the Securities and Exchange Commission (SEC) extended the deadline for four BTC ETFs – the Global X Bitcoin Trust, Valkyrie XBTO Bitcoin Futures Fund, WisdomTree Bitcoin Trust and Kryptoin Bitcoin ETF – by 45 days.
In September, the Bitcoin ETF was effectively backed by Van Eck, which was delayed for the second time this year with a decision date set for November 14 by the SEC.