According to the director of Digital Assets Strategy at VanEck, a Bitcoin ETF is one of the most positive things that can happen – and one that could attract billions of dollars in the new investments. In the latest Bitcoin news, this is what is viral – and why, according to VanEck, the Securities and Exchange Commission (SEC) should treat pending proposals in an opportunity to regulate the crypto markets.
Gurbacs, who is the Director of Digital Assets Strategy at the company, made the claim in an interview with CNBC Africa’s Crypto Trader show – where his comments came as a response to VanEck’s persistent requests to the US securities to approve their Bitcoin ETF proposals. However, the SEC has so far rejected nine similar proposals, citing concerns about manipulation and market surveillance in the crypto market.
VanEck is also known for meticulously modifying its ETF application in order to address the SEC’s concerns – and attempt to launch a crypto ETF under a conventional regulatory watch. If the SEC approves VanEck’s ETF application, this could be the first step towards potential regulation of crypto within the federal regulatory framework.
Garbacs also pointed that VanEck’s Bitcoin product is here to safeguard the interests of investors, stating:
“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.”
On top of this, he also highlighted the way in which it protects investors from price manipulation:
“The pricing 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.”
Finally, Gurbacs predicted that a Bitcoin ETF could perform much like traditional gold ETF – becoming the go-to option of many investors and racking up billions of dollars in ranges.
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