Michael Sonnenshein, Grayscale CEO, announces the company intends to file for a bitcoin ETF by converting its GBTC fund. With CNBC’s Melissa Lee and the Fast Money traders, Guy Adami, Tim Seymour, Karen Finerman and Brian Kelly. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi
The Securities and Exchange Commission formally acknowledged a bitcoin ETF proposal from VanEck just two weeks ago, starting the countdown on its 45-day approval timeline.
But seeing a bitcoin ETF approved in the next 30 days isnโt that likely, according to Todd Rosenbluth, head of ETF and mutual fund research at CFRA Research.
Itโs more likely that the SEC will extend its timeline, he told CNBCโs โETF Edgeโ on Monday.
โWeโve got a number of firms that have either gone through the filing process or have previously filed but are waiting for more clarity,โ Rosenbluth said. โThe SEC is less likely to try to pick a winner, we think, as to who comes first and weโre more likely to see them โ if they do approve any ETF โ to approve multiple bitcoin-related ETFs. Weโve got a number of firms that have entered and we think weโre likely to see one in the coming year or two, but we donโt have a firm time frame as to when the answer would be yes.โ
Joining the roster of prospective bitcoin ETF issuers is Grayscale. The investment firm said Monday it was โ100% committedโ to converting its Grayscale Bitcoin Trust into an ETF. VanEck, Fidelity and Valkyrie Digital Assets are among the firms that have already filed applications.
With so much discussion around bitcoin, some may wonder whether it could be worked into ETFs such as VanEckโs new Social Sentiment ETF (BUZZ) because of the digital coinโs popularity, but the answer is no, says Jamie Wise, founder of Buzz Indexes.
โThereโs an awful lot of discussion around bitcoin and other crypto-assets and tokens for buyers, but no, you shouldnโt expect to see any crypto into BUZZ,โ he said in the same โETF Edgeโ interview. โBUZZ is very clearly defined as large-cap U.S. equity exposure by sentiment and would not hold bitcoin or other crypto-assets.โ
While you wonโt find any crypto-assets in BUZZ, VanEckโs models do track and analyze sentiment around cryptocurrencies, โand weโll see what happens in the future,โ Wise said. โMaybe not in BUZZ. Maybe in something else.โ
In other areas of the ETF market, there is still a push to incorporate crypto exposure despite regulatory limits.
Art Amador, co-founder and chief operating officer of EquBot and the man behind the Artificial Intelligence Powered ETF (AIEQ), said that while his fund canโt invest in bitcoin, itโs important to get into the crypto ecosystem.
AIEQ does this through small-cap names such as Silvergate Capital, which provides cash management services to digital currency businesses, and Marathon Digital Holdings, a cryptocurrency mining company.
โWe want investors to have exposure,โ Amador said in the same โETF Edgeโ interview. โThat said, weโre also seeing a lot of regulatory headwinds, not just during rush, but also globally.โ
Still, he expects further increases into the ecosystem as headwinds subside.
The price of bitcoin climbed nearly 1.5% on Monday, according to CoinMetrics.
ยป Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
ยป Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
ยป Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic
Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.
The News with Shepard Smith is CNBCโs daily news podcast providing deep, non-partisan coverage and perspective on the dayโs most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast
Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
https://www.cnbc.com/select/best-credit-cards/
#CNBC
#CNBCTV
source
