Thursday, June 20, 2019

VanEck Looks Forward to Bitcoin ETF Approval

VanEck’s Director of Digital Assets Strategy in the Person of Gabur Gurbacs has shown optimism in respect to the looming decision which SEC is about to make concerning the proposal of VanEck and SolidX, which is the Bitcoin exchange-traded fund (ETF).

Gurbacs appeared on Cheddar and while speaking to Brad Smith, the host, he stated that although it is true that the market desires a Bitcoin ETF, the only available news is that VanEck hopes that the reasons it has given to the SEC will be more than enough to endorse the fund and that there is a high possibility of it working out.

While giving the reason why the company is so optimistic, he stated:

“The last day the ETF can be approved is end of February. We think we have met all required market structure, obstacles and requirements on pricing custody evaluation safekeeping. So, we are consciously optimistic but there is a lot more work to be done sort of to get the market ready. And some good announcements recently on over-the-counter markets being transparent.”

The discussion which featured on the twitter account of Brad Smith was met with varied reactions from people who were torn between joining Gurbacs in his optimism or simply to remain doubtful about the transparency of the market as well as its surveillance abilities.

Gurbacs later posted a tweet in support of his stand on the rise in the crypto market’s maturity process.

Apart from the proposal submitted by VanEck, the SEC has also received Bitcoin ETF proposals from 9 different sources and all of such proposals were denied. The general reasons for the denial of all these proposals are centered on concerns of possible manipulation of the crypto market and also the lack of a good system of surveillance for the market.

In order to have a better chance, VanEck has adjusted their proposals severally to remove all sources of concern. Gurbacs stated in November that not only will a Bitcoin ETF pull in investments worth billions of dollars, but the proposals yet pending can also help the SEC find proper ways to regulate the crypto market.

Despite the fact that it is hard to tell when SEC might arrive at a decision regarding the application of VanEck, a lot of eyes are monitoring unfolding events as many stakeholders within the crypto industry believe that the VanEck application will have a different outcome compared to others. The SEC’s ruling regarding the application has been postponed two times already with yet another postponement arriving last night which shifts the time expected for the decision to 2019, precisely February ending.

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