Bloomberg Senior ETF Analyst: SEC Bitcoin ETF Approval Is Just Around the Corner
A Bitcoin exchange traded fund approval from the US SEC is just around the corner, according to Bloomberg’s Senior ETF Analyst Eric Balchunas.
Regulators in Canada approved two Bitcoin ETFs earlier this month, the first of their kind in North America, and when Canada launches trading products the US SEC usually follows.
Added the success of the two Canadian Bitcoin ETFs, which saw the Purpose Bitcoin ETF the biggest traded ETF on the Toronto Stock Exchange (TSX) on its first day, and the SEC now knows demand for a Bitcoin ETF is unquestionable.
Eric Balchunas: Canada Usually Leads And The US Quickly Follows
Canada is known to launch trading products before the US, and even launched the first ever exchange traded fund even though it was an American idea.
So, now we have two in Canada, Balchunas argues that it will trigger the SEC into taking action, and once they do, ‘it will happen pretty quickly’.
‘I think it’s just a matter of the SEC coming around, and then once they come around mentally, I imagine it will happen pretty quickly. But again, I’m not in that bubble. I’m not a regulatory analyst. That’s just my sense from talking to people,’ explained the Bloomberg ETF analyst.
Eric Balchunas was speaking on The Scoop podcast and explained how Canada and Europe were usually quicker out of the blocks than the US, who tended to play it conservatively.
The Bloomberg ETF analyst pointed out Europe’s multiple ETPs hadn’t really triggered anything within the SEC, because it was ‘so far away.’ But now Canada had launched a Bitcoin ETF, and given its immediate success, it would make the SEC take swifter action.
‘Canada is right up there. It’s almost like a neighboring state, and the ability for people to talk about it in US hours,’ said Balchunas. ‘It just becomes much more present for the SEC… and its why the SEC will follow Canada because we’re so close.’
Canada’s Bitcoin ETFs
Canada launched the first ever Bitcoin ETF earlier this month, and quickly followed with a second one.
The Purpose ETF was first and opened for trading on 18 February, and was the biggest traded ETF on the Toronto TSX that day with over 10 million shares changing hands.
And unlike other debuting ETFs, it didn’t have a second day drop-off – instead seeing a 30% increase in trading.
Trading and capital inflows have slowed since its first two days of operations, but with a value of over $624 million, and with 10,215.9 BTC AUM, it’s an impressive launch.
Canada’s other Bitcoin exchange traded fund – Evolve ETF is somewhat smaller than the Purpose ETF, but it has regularly traded in the top 20 ETFs on the TSX since launch, which is impressive for any new exchange traded fund.
SEC Readying Itself For A Bitcoin ETF
Canada usually leads with launching trading products, while the conservative US SEC watches from the sidelines. Given the success of the Purpose ETF, there can be no more denying the demand for a Bitcoin ETF is there.
The SEC is keeping a close eye on what’s happening north of the border, and with a new blockchain friendly chairman ready to take the helm, it’s only a matter of time before we see a Bitcoin ETF in the US.