Bitcoin Futures ETF Could be Approved Next Year, Says Market Analysts

Jafrin  |  Oct 13, 2021

Bitcoin futures ETF will likely be approved next year until the regulatory environment is more clear, CFRA Research's Todd Rosenbluth told CNBC's "ETF Edge" on Monday.

Bitcoin Futures ETF Will be Approved First

A Bitcoin futures product is likely to be the first crypto ETF to obtain clearance, Todd Rosenbluth senior director of ETF and mutual fund research at CFRA, said, adding "We think we're more likely to see a bitcoin futures ETF first.”

"It's a timing issue. Does it happen in 2021 or does it move to 2022 so all of these products that ... could meet the goals actually are approved and can launch at the same time instead of getting a first-mover advantage?"

VanEck, ProShares, Invesco, Valkyrie, and Galaxy Digital have all filed for bitcoin futures ETFs. The first four could be approved, denied, or have their decisions delayed by mid-to-late October; Galaxy Digital's fate will be revealed by Nov. 1.

As of yet, the SEC has not approved over 20 crypto asset-based exchange-traded products. To avoid a “first-mover advantage,” analysts speculated that authorities might be waiting for all of these items to satisfy their objectives before approving them all at the same time.

SEC Concerned Between Bitcoin and Futures

According to Van Eck Associates CEO Jan van Eck, the SEC is most concerned about price differences between bitcoin and futures in addition to the potential of funds getting too large. When there is a Bitcoin rally, futures strategies can underperform by as much as 20% a year, he said before adding “the SEC wants to have some visibility into the underlying Bitcoin markets.”

Earlier this month, the SEC extended the deadline of four BTC ETFs, the Global X Bitcoin Trust, Valkyrie XBTO Bitcoin Futures Fund, WisdomTree Bitcoin Trust, and Kryptoin Bitcoin ETF  for 45 days. In September, Van Eck’s physically-backed Bitcoin ETF was delayed for the second time this year with a decision date set for Nov. 14 by the SEC.

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