Todd Rosenbluth, a researcher, analyst, and head of ETF at CFRA Research, said he was optimistic that the U.S. Securities and Exchange Commission (SEC) would approve of the first Bitcoin ETF in a year or two. He added that the SEC would look into the requests made by VanEck, an investment management firm. Recall that on March 15, the SEC announced that it had received a filing from VanEck.
Consequently, the regulatory body has until April 29 to decide on the application or shift the deadline to a later date. “Many firms have applied for the Bitcoin ETF and done the necessary filings. They are now waiting for further direction from the SEC,” Rosenbluth explained. He also noted that the SEC might not select just a single winner but could approve as many applications as possible.
Many firms have applied for Bitcoin ETFs that are still unapproved
Rosenbluth also stated that many companies have applied, and he was optimistic that by 2023, the SEC would have approved some of them. However, he was not sure of the timeline. In January, VanEck and Valkyrie had submitted their joint application requesting that the SEC approve their filings. Fidelity also filed its application in March. However, the agency has not given a clue about its next step. Judging from its reluctance to approve a Bitcoin ETF, analysts do not hope the SEC will consider the applications soon.
While the U.S. is slow to approve the Bitcoin ETF applications submitted over the years, Canada has been a pacesetter in North America. In February, Purpose Investment, headquartered in Toronto, commenced a Bitcoin ETF. Meanwhile, NinePoint Partners has submitted a request to convert its Bitcoin Trust to ETF. In the same vein, 3iQ and Evolve Funds Group have submitted their applications to the Canadian regulatory bodies for cryptocurrency ETFs.
After Fidelity filed its prospectus in March, Rosenbluth remarked that he was pretty sure that the SEC would grant its approval for a crypto ETF, but he wasn’t sure of the time. His remarks implied that more and more firms would be filing after the first approval. “After approving the first one, they’ll surely approve the rest,” he concluded.
VanEck submitted its first Bitcoin ETF filing in January
Recall that the Chicago Board Options Exchange (CBOE) requested to list the VanEck in January. Since 2017, VanEck has been looking forward to launching a Bitcoin ETF. Then, the firm formed a partnership with solidX to apply for one, but they halted the partnership even before the SEC decided on the application.
In January, SolidX charged VanEck with the allegation of using its Bitcoin ETF. The appellant approached the court claiming that the respondent was dishonest to apply for approval using SolidX work. US firms are now hopeful that the exit of Jay Clayton of the SEC will open a new door for Bitcoin ETF approval because the Clayton administration turned down nine different Bitcoin ETF applications.
The SEC hinged its decision on the fact that the Bitcoin industry is unregulated. The body repeatedly cited the exact reason for the rejection, adding that the crypto market is prone to price manipulation. Last month, an asset management firm also filed a Bitcoin ETF with the SEC. However, some analysts say the Canadian government approval may impetus the SEC to revisit the applications.