Nov 10, 2018 07:03 UTC
Nov 15, 2018 at 12:56 UTC
VanEck Believes Bitcoin ETF Has Potential To Attract Billions in Investment
The director of Digital Assets Strategy at VanEck has asserted during an interview with CNBC that Bitcoin Exchange-Traded Fund (ETF) can open the doors for potential Billions of dollars in investment. He requested the Securities and Exchange Commission (SEC) to treat pending proposals as an opportunity to regulate the Crypto market.
During Africa’s Crypto Trader interview with CNBC, Mr. Gurbacs asserted on the persistent request to US securities to approve their Bitcoin ETF proposal. However, the SEC seems to be removed and have already rejected 9 such proposals citing chances of manipulation and market surveillance in the crypto Spot market.
VanEck, on the other hand, has left no stone untouched to not only make Bitcoin ETF mainstream but also made certain changes to its application. It has modified its ETF application to resolve the SEC’s concerns. VanEck is hell bent upon launching a Bitcoin ETF under a conventional regulatory watch. If the proposal gets a Green light, VanEck believes that it will pave a path for regulators as well as other companies to understand how Crypto can be brought into the mainstream while still fitting into the federal regulatory framework.
SEC Concerns and how VanEck is trying to counter it:
SEC has a very genuine concern over making Bitcoin ETF a mainstream, as the digital form of money is quite complex to keep a track upon. Mr. Gubracs during the interview addressed these concerns and said,
“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.”
When asked about the protection against Price manipulation, Mr. Gubracs pointed out,
“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.”
Also Read: Abra’s CEO optimistic about ETF
ETF Market Prediction:
When asked about the potential that ETF holds in terms of Crypto world in the market, Mr. Gurbacs was quick to point out that it won’t be any different from the Gold ETF. He said if investors feel insecure to invest in the crypto through spot markets, they can always opt for ETF as a conventional form of trading.
VanEck believes Bitcoin ETF holds great potential and once their plans get approved, it might attract investments up to $1 Billion.
“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.”