A bitcoin ETF could attract billions of dollars in new investments, so
the Securities and Exchange Commission (SEC) should treat pending
proposals as an opportunity to regulate the crypto market, said crypto
exchange-traded fund advocate Gabor Gurbacs.
Gurbacs, the director of Digital Assets Strategy at VanEck, made this
claim during an interview with CNBC Africa’s Crypto Trader. The
comments came in the wake of VanEck’s persistent requests to the US
securities regulator to approve their bitcoin ETF proposals. The SEC
so far has rejected nine similar proposals, citing concerns about
manipulation and market surveillance in the crypto spot market.
VanEck has been in the news for meticulously modifying its ETF
application to address the SEC’s concerns. In times when the nascent
crypto industry sometimes still works in a grey area of law, VanEck is
attempting to launch a crypto ETF under a conventional regulatory
watch.
If the SEC approves their ETF application, then it could certainly pave
the way for both regulators and industry companies to understand how
crypto fits into the federal regulatory framework.
SEC Concerns and VanEck’s
Response
In the interview, Gurbacs said that VanEck’s bitcoin product would
safeguard the interests of investors while preserving the overall
benefits associated with digital currency trading.
“What sets our ETF apart is that it’s a physical bitcoin ETF. So, it
stays true to the bitcoin you own in underlying,” he explained.
“It’s fully insured so if there is any theft, hacks or losses; then
the insurance covers it.”
Gurbacs also highlighted how they would protect the investors from
price manipulation.
“The pricing,” he explained, “that we use for bitcoin comes from
our indexing subsidiary. It is a regulated entity which provided the
first financial standard and regulated indices. The ETF is
institutional-oriented, so we have a cap of 25 bitcoins per basket.”
Market Prediction
The interview also saw a particular segment dedicated to exploring the
potential approval of VanEck’s bitcoin ETF and how it might have an
immediate impact on the bitcoin market as a whole.
Gurbacs predicted that a bitcoin ETF could perform much like a
traditional gold ETF. Institutional investors, who do not want to take
risks by investing in bitcoin via less secure and safe spot markets,
could find ETFs as a go-to option. As a result, the very first day of a
BTC ETF could attract as much as $1 billion in investments.
“Our gold ETFs are already in a few billion dollars range,” Gurbacs
added. “There are gold ETFs in $10 billion range as well. I wouldn’t
be surprised if a bitcoin ETF gets in a few billion dollars range.”
the Securities and Exchange Commission (SEC) should treat pending
proposals as an opportunity to regulate the crypto market, said crypto
exchange-traded fund advocate Gabor Gurbacs.
Gurbacs, the director of Digital Assets Strategy at VanEck, made this
claim during an interview with CNBC Africa’s Crypto Trader. The
comments came in the wake of VanEck’s persistent requests to the US
securities regulator to approve their bitcoin ETF proposals. The SEC
so far has rejected nine similar proposals, citing concerns about
manipulation and market surveillance in the crypto spot market.
VanEck has been in the news for meticulously modifying its ETF
application to address the SEC’s concerns. In times when the nascent
crypto industry sometimes still works in a grey area of law, VanEck is
attempting to launch a crypto ETF under a conventional regulatory
watch.
If the SEC approves their ETF application, then it could certainly pave
the way for both regulators and industry companies to understand how
crypto fits into the federal regulatory framework.
SEC Concerns and VanEck’s
Response
In the interview, Gurbacs said that VanEck’s bitcoin product would
safeguard the interests of investors while preserving the overall
benefits associated with digital currency trading.
“What sets our ETF apart is that it’s a physical bitcoin ETF. So, it
stays true to the bitcoin you own in underlying,” he explained.
“It’s fully insured so if there is any theft, hacks or losses; then
the insurance covers it.”
Gurbacs also highlighted how they would protect the investors from
price manipulation.
“The pricing,” he explained, “that we use for bitcoin comes from
our indexing subsidiary. It is a regulated entity which provided the
first financial standard and regulated indices. The ETF is
institutional-oriented, so we have a cap of 25 bitcoins per basket.”
Market Prediction
The interview also saw a particular segment dedicated to exploring the
potential approval of VanEck’s bitcoin ETF and how it might have an
immediate impact on the bitcoin market as a whole.
Gurbacs predicted that a bitcoin ETF could perform much like a
traditional gold ETF. Institutional investors, who do not want to take
risks by investing in bitcoin via less secure and safe spot markets,
could find ETFs as a go-to option. As a result, the very first day of a
BTC ETF could attract as much as $1 billion in investments.
“Our gold ETFs are already in a few billion dollars range,” Gurbacs
added. “There are gold ETFs in $10 billion range as well. I wouldn’t
be surprised if a bitcoin ETF gets in a few billion dollars range.”
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