Bloomberg Intelligence Commodity Strategist Mike McGlone believes it is only a matter of time before the U.S. Securities and Exchange Commission (SEC) approves the country’s first Bitcoin exchange-traded fund (ETF). In an interview with Stansberry Investor host Daniela Cambone on Sept. 21, McGlone asserted that Canada is extending a competitive lead over the United States after approving Bitcoin ETFs from 3iQ and Coinshares in April.
He emphasized that capital is flowing from the U.S. to Canada’s institutional crypto products, including from Cathie Wood’s Ark Invest. However, he believes that lawmakers in the United States will not want to miss out for much longer.
When asked about a timeframe on potential U.S. Bitcoin ETF approval, McGlone said it could happen “potentially by the end of October.” He maintained that it was likely to be a futures-backed product first, adding that it would open a “legitimization window for a massive amount of money inflow.”
McGlone also reiterated the latest report from Bloomberg Intelligence that stated Bitcoin prices hitting $100,000 was a possibility this year, and this would be driven by the approval of an ETF. Crypto YouTuber Lark Davis shares McGlone’s price targets, observing that in previous bull markets in 2013 and 2017, the latter quarters saw huge price rallies.
Are crypto exchange-traded funds (ETFs) finally coming to the United States of America? Dozens of cryptocurrency-based ETFs or ETF-like products are currently selling on regulated exchanges in Europe, while Canada and Brazil have already introduced their own versions this year. Over the past eight years, however, not a single investment firm has won the U.S. Securities & Exchange Commission’s (SEC’s) approval for a cryptocurrency-backed ETF. The winds may now be shifting.
“A futures-based Bitcoin ETF will be approved in the coming weeks, not months,” John Sarson, co-founder and CEO at Sarson Funds LLC, told Cointelegraph, adding that “the futures market for Bitcoin is now extremely well tested and very liquid at three years of age.”
The outlook wasn’t nearly as promising a month ago, but things gained momentum on Aug. 3rd when SEC chief Gary Gensler signaled in a statement that the U.S. regulatory agency was not necessarily opposed to futures-based Bitcoin (BTC) ETFs.
Gensler said that he was looking forward to his staff’s reviews of recent filings from firms looking to market exchange-traded funds with an indirect exposure to the world’s leading cryptocurrency, “particularly if those [fund offerings] are limited to CME” — i.e, Chicago Mercantile Exchange — “traded Bitcoin futures.”
The entire cryptocurrency industry is waking up to a new reality. Politicians and regulators have decided to wade into the space, which had flown mainly under their radar until now. A House committee chair is launching a working group; the Securities and Exchange Commission is seeking new authorities to regulate digital assets as securities; and the Senate-passed infrastructure bill includes $28 billion in tax revenues from crypto transactions.
This last handful of weeks has arguably seen more regulatory activity around digital currencies since the name Satoshi Nakamoto first entered the popular lexicon. Anyone whose business deals in this asset class will need to pay close attention.
The Senate’s $1.2 trillion infrastructure framework, which became the Infrastructure Investment and Jobs Act, enjoyed strong bipartisan support. However, one of the more contentious provisions is a “pay-for” related to reporting and taxing cryptocurrencies.
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