Global Head of Bitwise Believes Bitcoin ETF Coming Soon
John Hyland, the worldwide head of exchange-traded merchandise for Bitwise Asset Management, believes the SEC may quickly approve a cryptocurrency ETF according to an interview with ETF.com.
Hyland thinks the SEC’s questions with regards to cryptocurrency ETFs have largely been addressed. Bitwise has saved its personal fund’s crypto belongings in a regulated custodian, a service the 5 giant ETF custodial corporations are contemplating providing.
An ETF holding’s swaps or futures may very well be custodized by an ETF custodian that manages futures based mostly currency or commodity ETFs. Another SEC concern is enhanced regulated trades. Some of the large ETF retailers are establishing cryptocurrency buying and selling desks, which means a cryptocurrency ETF may transact on platforms with a regulatory standing much like what they already do with equities.
SEC Actions Coming Soon
Hyland thinks the SEC will approve the first cryptocurrency ETF by 2019 the latest, with a 20% chance it will be after that.
Asked about physical versus futures bitcoin ETFs, Hyland estimates between $6 billion and $7 billion in bitcoin is traded every day whereas only $40 million to $50 million of bitcoin futures is traded daily. With physical bitcoin, it’s not essential to purchase futures or take care of all of the charges.
Once the dominoes begin falling with the primary accepted cryptocurrency ETF, Hyland believes additional products will snowball into the market since a precedent has been set.
Asked what kinds of crypto ETPs he would deliver to the market, Hyland stated he’ll supply various coin groupings via a passive index, much like the corporate’s present personal fund. The firm currently produces a market cap weighted index consisting of the highest 10 cryptocurrencies. The firm will present further indices based mostly on attributes apart from liquidity and measurement.
Bitwise may also file for offerings outside the US, as Hyland notes that bitcoin ETPs exist in Europe.