Monday, June 17, 2019

Possible Multi-Billion Dollar Investment Coming to Bitcoin ETF Soon

Garbor Gurbacs, the director of Digital Assets Strategy at VanEck, has predicted that the launch of the first ever Bitcoin ETF (exchange-traded fund) could indicate the front amassing a couple of billions of dollars in investment.

Gurbacs made this prediction in a recent interview hosted by Ran Neuner on the CNBC Crypto Trader program. He explained that a successful Bitcoin exchange trust-fund could send the market behavior of bitcoin up to a bullish run. He attributed this likely action to institutional funds which might make its way into the Bitcoin industry securities. This is primarily because exchange trust-funds will be well equipped this time to utilize to the maximum capability, investor securities while minimizing risks by its counterparts.

Gurbacs explained that at the moment about 90-95 percent of the space for digital assets is retail. He added that most people invest in Bitcoin through trading platforms which present low safeties and security measures which investors are not used to.

Does VanEck Stand a Chance?

Till date, a total of 9 Bitcoin exchange trust-funds has been rejected by the United States Securities and Exchange Commission popularly known as the US SEC. The SEC stated their reason for all the rejection as concerns for investor protection. The only ETF application considered for review is that of VanEck-SolidX duo which possibly might arrive December 29 this year or February 2019.

Spectators in the industry have a strong affirmation that VanEck, being an experienced investment management firm possessing a long-term professional relationship with the United States SEC has been able to fulfill all requirements to clear their doubts on the issue of investor protection. Observers believe that investors will soon start clinging to opportunities to invest in completely-insured Bitcoin contracts thereby making the price of Bitcoin skyrocket to an all-time high.

Gurbacs stated that the new security measures around Bitcoin financial instruments would bring it very much similar to the conventional exchange trust-funds.  Taking a Gold ETF for example, it possesses the same security plating that would be coated upon the Bitcoin ETF being developed at VanEck. Since the US SEC approved the ETF for Gold, it should authorize that of Bitcoin then.

He also added that Gold ETFs are already within a couple of billion dollars range, some within $10 billion, then Bitcoin ETF should not be any different as well. Gurbac was quoted saying:

“Our Gold ETFs are already in a few billion dollars range,” he 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.”

Market Interference

Manipulation of the Bitcoin spot market seems to be one of the many catalysts backing the rejection of ETFs by the US SEC. He cleared that virtually all other markets at present are facing some level of manipulation; citing an example of a JP Morgan trader who constantly manipulated the precious metal and commodity market for seven years. Furthermore, the strategist mentioned categorically that the Commodities Futures Trading Commission (CFTC) actually have the authority to regulate the spots market, not the US SEC.

SEC Will Review ETFs

The VanEck strategist also added that they introduced some form of institutional-grade security measures beginning with unalterable pricing sources in accordance with standard tools which would help reduce price manipulation.

VanEck for the Win

If all goes as planned, observers believe that the regulatory process for VanEck’s application for a Bitcoin ETF would go smoothly and would then be launched in March next year.

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