By CCN.com: A bitcoin ETF does not wait on the immediate horizon, according to the managing director of ETF.com , Dave Nadig. A veteran of the exchange-traded fund market and an indexing expert, Nadig told CNBC’s Bob Pisani that a bitcoin ETF was not “imminent” but remained a strong possibility for 2019.
Dave Nadig told CNBC there was no reason for any immediate hope of approval and that the regulator would likely exercise its authority to “kick this can down the road” and avoid making a decision as long as possible.
“The SEC is in information gathering mode. Technically, there are deadlines, but it’s the SEC, they can do what they want. They can kick this can down the road.”
The crypto community has long been critical of the SEC for what Commissioner Hester M. Peirce – Crypto Mom – labels “heel-dragging.” Crypto Mom is fighting for the approval of an exchange-traded product from within and has long argued that institutional money would ameliorate many of the concerns the regulator had about bitcoin.
Nadig concurred, predicting that as the crypto market matures, the “regulators will get more comfortable.”
“We’re at least a quarter out,” he said, “and I think there’s still a reasonable chance for this year.”
But they’re not comfortable yet.
The SEC delayed a decision on the VanEck ETF proposal yesterday, in another blow to the promise of a bitcoin ETF. The VanEck/SolidX Bitcoin Trust ETF is widely regarded as the most advanced product, and the one most likely to gain regulatory approval.
In its document filed Monday, the SEC put out a call for public comment and delayed a decision on the proposed rule changes that would allow the VanEck ETF to trade on the CBOE exchange to August 19.
Attorney Jake Chervinsky said that the SEC could – and likely would – delay the decision again in August until October 18.
The regulator also delayed the competing Bitwise Asset Management bitcoin ETF proposal last week. That product would trade on NYSE Arca. The fact that, at the time, the SEC remained silent on the VanEck proposal had led some to believe it would approve the latter.
That wasn’t to be.
The regulator has long been concerned about the custody arrangements the proposals had for the digital asset, as well as the potential for manipulation of crypto on largely unregulated markets. The relatively small size of the crypto industry also remains a key regulatory sticking point.
The Jay Clayton-led commission is yet to grant approval to any rule changes after dozens of attempts by a number of parties. As of yesterday, a bitcoin ETF appears no closer to reality.