The exchange-traded fund marketplace is unlikely to see a spot bitcoin ETF approved by the Securities and Exchange Commission this year, according to Morrison Warren, partner and co-chair of the investment management practice group at law firm Chapman and Cutler, who is on said an ETF industry conference on Monday.
“I wish I could say I was optimistic,” Mr. Warren said in comments at the Exchange conference in Miami, Fla., adding that he wasn’t. “The challenges we are currently facing are difficult to solve in the short term.”
The lawyer’s comments came during a session moderated by Bitwise Asset Management’s chief investment officer, Matt Hougan. Mr. Hougan’s firm applied to launch a spot bitcoin ETF and the application is currently pending with the SEC.
Mr. Hougan asked attorney Jeremy Senderowicz, a shareholder at law firm Vedder Price, to explain why the SEC has approved bitcoin futures ETFs but has not yet given the green light to a spot bitcoin ETF.
Bitcoin futures ETFs maintain exposure through a regulated futures market, Mr. Senderowicz said, adding that the SEC has a lot of experience with products based on regulated futures markets.
“It’s something they know how to regulate,” he said. “Many of the specific Investment Company Act issues that would arise if a fund were holding cryptocurrency directly do not apply if it were holding it in futures.”
Mr. Hougan asked Mr. Warren if it would take “several years” for an SEC-approved spot bitcoin ETF to arrive.
“No, I hope it’s next year,” said Mr. Warren.
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