Exchange-Traded Funds (ETFs) have experienced a remarkable surge in popularity in recent years, attracting a broad range of investors seeking exposure to diversified portfolios of assets. While traditional stock investors have long enjoyed the benefits of ETFs, the crypto community has been eagerly eyeing the potential for Bitcoin-spot ETFs to enter the market.
However, Jan Van Eck, CEO of the global investment management firm VanEck, said on May 18 there is ‘no chance’ that a Bitcoin-spot ETF will be launched in the US in the near future, according to a Bloomberg report.
Van Eck added he doesn’t see this happening even if the US Securities and Exchange Commission (SEC) fails to secure a win in the legal dispute against Grayscale, which sued the securities regulator for blocking its move to convert its Bitcoin trust into an ETF.
“Even if the SEC loses the Grayscale litigation, they’ll just drag their feet. So I just don’t see that in the next year and a half.”– said Jan Van Eck.
The entrepreneur also referred to the recent filings from rival ETF firms for launching Ether-futures-based funds, three of which have already been withdrawn just several days after being filed.
“The SEC will drag their feet. They have so many regulatory tools.”– he added.
Why are ETFs banned in the US?
ETFs refer to investment funds that are traded on stock exchanges, similar to individual stocks. However, these funds are designed to track the performance of a specific index, sector, or commodity, offering investors a way to gain exposure to a diversified portfolio of assets.
While they are very popular in the stock market, crypto investors have also shown interest in Bitcoin futures ETFs in the US. However, the SEC and other regulators have been notably cautious in approving Bitcoin-spot ETFs, citing concerns regarding investor protection and market integrity.
Several crypto firms, including Grayscale, have filed proposals to launch spot Bitcoin ETFs, but the regulator has not yet approved any. Among other things, the SEC has expressed concerns about the lack of surveillance and oversight in crypto exchanges, which could hinder their ability to regulate ETFs based on cryptocurrencies like Bitcoin.
Elsewhere, other jurisdictions, including Canada and Brazil, have already given the green light to Bitcoin ETFs in 2021. Switzerland also approved the world’s first physically-backed Bitcoin ETF a year earlier.