ETF Trends CEO Tom Lydon appeared on CNBC’s ETF Edge on Monday, and the potential for a Bitcoin ETF approval in 2020 was a key topic of conversation. The prospect of a Bitcoin ETF has been tracked closely by cryptocurrency enthusiasts for a number of years now, mainly due to the potential impact such a product could have on the Bitcoin price.
ETF or not, industry executives have already predicted that the Bitcoin price could reach $20,000 or $50,000 by the end of 2020. Additionally, the crypto asset took a major step forward in 2019 in terms of living up to its key use case.
During his appearance on CNBC, Lydon mentioned a few recent developments that could indicate a Bitcoin ETF will happen in 2020.
For one, the SEC recently approved its first ‘40 Act-approved Bitcoin fund in the form of the NYDIG Bitcoin Strategy Fund.
“What it [does] is basically approve that it’s filed as publicly traded, so you can, like a regular mutual fund, like the Magellan Fund, there’s a sister mutual fund out there where you can invest in Bitcoin,” explained Lydon. “However, it’s limited to only $25 million at this point.”
Lydon also pointed out that the CME began offering Bitcoin options for the first time on Monday. The ETF Trends CEO claimed the SEC’s concerns regarding a lack of liquidity and safety around the Bitcoin asset could be mitigated through the use of options and futures.
“The more we can get on account statements like your Schwab account, like your TD [Ameritrade] account — that’s going to help things out,” Lydon added.
Lydon shared his view that there’s a 60% chance of a Bitcoin ETF happening this year when asked to provide a prediction. DataTrek Research co-founder Nick Colas then shared his belief that there is only a 10% chance of a Bitcoin ETF being approved in 2020, and CNBC’s Bob Pisani agreed with Colas’s prediction.
“They still haven’t figure out that — remember, you’re not dealing with the CFTC here. This is not futures, different people,” argued Pisani. “The SEC is terrified grandma is going to buy a Bitcoin ETF that is going to collapse, and five years later, all the people running the SEC are going to get hauled in front of Congress and get [asked], ‘Are you the guys who approved grandma buying the Bitcoin ETF?’”
Lydon countered Pisani’s argument by stating everyone would be better off if Bitcoin trading was included on registered brokerage statements, so the regulators can track everything more easily.