VanEck optimistic about Bitcoin ETF

A Bitcoin ETF (exchange-traded fund) could just be a fact within a few months and when this becomes the case, billions of dollars of institutional investments could be pumped into the crypto market. This is what Gabor Gurbacs, Director of Digital Asset Strategy at investment company VanEck, said in an interview on CNBC Africa.

The ETF proposal submitted by VanEck is the largest contender to receive the necessary approval from the Securities and Exchange Commission (SEC). So far, the American watchdog has rejected several ETF proposals, including those of the Winklevoss twins, and postponed decisions on some others. The next decision of the SEC on the Bitcoin-ETF of VanEck, which would be on the Chicago Board Options Exchange (CBOE), will be announced on December 29th. If the supervisor then resets the decision, it will make a final judgment on February 27, 2019.

After every rejection of the SEC, VanEck has always done its best to meet the concerns of the committee. In July Gurbacs attempted to take away the concerns of the SEC by means of a letter. The main reason for the SEC to be cautious about approving ETF proposals is because the committee was initially set up to protect US investors. Gurbacs states in the interview that VanEck's Bitcoin product is designed in such a way that it protects the interests of investors while preserving the general advantages of cryptocurrency trading:

“What makes our ETF stand out is that it is a physical Bitcoin ETF. That is why it remains faithful to the BTC that you own in the underlying asset. It is fully insured, so if there are investors who are worried about theft, hacks or losses, the insurance covers it all.”