Former CFTC Chairman recommends Bitcoin ETF to investors and regulators
Timothy Massad, the former chairman of the Commodity Futures Trading Commission (CFTC), has suggested that a Bitcoin exchange-traded fund (ETF) will favor investors and regulators.
For the uninitiated, a Bitcoin ETF mimics the price of the digital currency, allowing investors to buy into the digital asset without trading or storing Bitcoin itself.
According to Bloomberg, Massad urged the Security and Exchange Commission (SEC) to adopt a Bitcoin ETF that would improve the rapidly growing cryptocurrency industry.
The next best thing, then, is for the SEC to approve an ETF conditionally in a way that would enhance transparency and integrity in the industry.
Despite his recommendation, the former chairman admits that the chances of this happening in the short term are slim.
Although it would be best to see such ETFs approved only after Congress has strengthened crypto regulation generally, the likelihood of that happening in the near future is low.
Todd Rosenbluth, the head of ETF and mutual fund research at CFRA asserted that a Bitcoin ETF is at least one year away while speaking to CNBC in April.
We think we're likely to see one in the coming year or two, but we don't have a firm timeframe as to when the answer would be yes.