Optimism abounds on cryptocurrency ETFs despite lack of action

The financial technology industry is predicting that regulators will allow investments in virtual currencies through exchange-traded funds, or ETFs, despite rejections of past efforts and with no indication by officials that a reversal is imminent.

The Securities and Exchange Commission has rebuffed at least eight proposals, the last one in February, for bitcoin exchange-traded funds. The rejections cite the possibility of manipulation in the cryptocurrency market, notably reports that bitcoin’s price can be influenced for a profit.

Experts contacted by CQ Roll Call, even those wary of cryptocurrency in general, say growing interest in the idea by financial companies will eventually