Analyst: Exchange-Traded Fund Looking More Likely

FinTech, Innovation, Investing, News | August 25, 2017 By:

The future of a US-based exchange-traded fund is looking up, according to one analyst.

Eric Balchunas, an analyst with Bloomberg Intelligence, said on a segment of Bloomberg Technology that recent developments auger well for an ETF to finally win approval. The SEC previously turned down a bid by the Winklevoss twins in March, but have not yet ruled on their appeal on the decision.

Since that turn-down, positive developments in the market and a change in personnel at the US Securities and Exchange Commission may have created a more favorable climate for an ETF confirmation.

“Now you have the CBOE (Chicago Board Options Exchange) announcing they’re going to list bitcoin futures,” said Balchunas.  “And if the CTFC approves it and it is regulated, it will help bring more liquidity into the market. That’s a big deal; I think it’ll help with the SEC.”

Balchunas also cited the fact that a lawyer from the firm representing the Winklevi is close to gaining an advisory role with the SEC’s investment management division. “It can’t hurt,” he said. “And I think the SEC has shown a few things that look like they’re a little more liberal than they were last year.”