Investment Expert Reggie Browne Speaks on Bitcoin ETFS: Be Patient


A major trading head is talking to Business Insider about the future of Bitcoin ETFs.

Cointelegraph reports today that Reggie Browne spoke yesterday about the outlook for Exchange Traded Funds that allow stakeholders to trade Bitcoin and possibly other cryptocurrencies more flexibly.

Browne is a big voice in the industry – a Washington Post article from March 2014 shows the profile of the manage senior managing director and head of ETF trading at Cantor Fitzgerald working on deals, influencing the financial world and bringing information to markets, especially ETF markets. In the past, Browne was head of ETF trading at Knight Capital Group and has been active in promoting ETF markets.

“Reggie’s one of the most influential people in building the ETF landscape over the last decade,”  Rodney Comegys at Vangaurd told the Washington Post. “He’s a missionary, especially in the institutional space. He’s the person on the ­­edge showing people the power of the ­exchange-traded fund.”

Now, the man who some call the “Godfather of the ETFs” is commenting on the outlook for key moves by the U.S. Securities and Exchange Commission to either approve or deny new exchange traded funds focusing on Bitcoin.

“It’s very difficult for the [Securities and Exchange Commission to wrap their heads around a positive approval because there’s no data yet,” Browne reportedly said. “The markets just aren’t here.”

The upshot of Browne’s reported remarks seems to be that it will take time for regulators to build a stable rule base for crypto markets, which he feels will help the SEC to better understand how to move ahead with ETF approval.

While the SEC rejected nine Bitcoin ETF applications in August, SEC officials are now meeting with industry leaders to talk about prospects for eventual approvals. On the street, opinions are mixed – while some believe if the Winklevoss twins couldn’t do it, nobody can, others think that it’s only a matter of time before the SEC comes around, and that seems to be Browne’s line of thinking as well.

What does ETF approval mean for markets? It’s generally an indicator of whether the crypto realm will get this kind of support, allowing the average investor to get more involved. For example, we’ve seen what ETFs do for precious metals trading – people who don’t want to feel safe with physical gold or silver will simply hop on the market and utilize an ETF option that’s tailored to their level of exposure and the funds they have available. Doing the same thing for Bitcoin would really open up investment avenues, and you could see it influence long-term prices over time.