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Monday, October 18, 2021

Bitcoin Futures ETF To Be Delayed Until 2022

You might observe more delay in the approval of Bitcoin exchange-traded products or ETPs due to uncertainty from the regulatory bodies.

Crypto asset investors will have to wait longer for the BTC futures ETP according to Todd Rosenbluth.

Bitcoin Futures Can Be The First To Be Approved But Might Be Delayed

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Rosenbluth stated that a Bitcoin futures product will be the first crypto ETF to be approved but it could be delayed due to a clouded regulatory situation.

There are more than 20 crypto asset-based ETPs that are waiting for approval from the USSEC and the regulator is yet to approve any and is instead kicking the can down the road.

Research has suggested that the regulator could be waiting for all of these products to meet its goals so that they can be authorized at the same time to avoid any “first-mover advantage”.

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Jan van Eck commented that the primary concern for the SEC is the discrepancy between actual Bitcoin prices and the price of the futures contract, in addition to the potential of funds getting too large.

Whenever there is a Bitcoin rally, the futures strategies can underperform by approximately 20% in one year. The SEC wants to look into the Bitcoin markets to know more about its workings.

Van Eck also suggested that the regulator wants to attain more control over crypto trading, which it appears to be attempting with its recent threats against Coinbase and the exchange’s stablecoin lending product.

Any speculation over a possible delay could hit Bitcoin and its price as analysts had suggested that big investors may be buying up BTC in anticipation of an ETF approval this month. The asset has rallied 37.5% over the past fortnight to reach a local top of $58k on Tuesday, but more regulatory procrastination could quash current market momentum.

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