Sorry, bitcoin bulls.
The digital currency’s highly anticipated entrance into the world of exchange-traded funds will likely have to wait a while longer, according to ETF expert Dave Nadig.
“Based on the comments we saw last week around one of these filings, it’s clear the SEC is still in information-gathering mode,” Nadig, who is managing director of ETF.com, told CNBC’s “ETF Edge ” on Monday.
Nadig was referring to the Securities and Exchange Commission’s recent delay in approving a bitcoin ETF from Bitwise Asset Management and NYSE Arca, which first filed for approval in January of this year. On Monday, the SEC also postponed its approval for a similar fund, the VanEck SolidX Bitcoin Trust.
The regulatory body’s delays in approving bitcoin ETFs are piling up. The SEC already postponed deciding on Bitwise and VanEck’s funds in March.
“Technically, there are deadlines, but, honestly, it’s the SEC. They can do what they want,” Nadig said. “They can kick this can down the road until they’re comfortable.”
But he said “there’s still a reasonable chance” that a bitcoin ETF could receive approval by the end of this year.
Many ETF experts have echoed this sentiment, arguing that it’s only a matter of time before a bitcoin ETF receives full-fledged approval.
But the fact that the SEC is still in the information-gathering phase of its process doesn’t bode well for some of the more ardent bitcoin bulls out there, Nadig said.
“I think things are pointing towards a positive resolution for bitcoin bulls, but I don’t think it’s imminent. I still think we’re at least a quarter out,” he said. “We need to see this market mature, and as it matures, the regulators will get more comfortable.”
The price of bitcoin has soared this year, topping the $8,000 level earlier in May for the first time in nearly 12 months. The digital currency has cooled off since then, losing nearly 6% in Monday trading.