CBOE VanEck SolidX Bitcoin ETF Proponent Gabor Gurbacs Offers Top Benefits of Crypto ETF Approval
CBOE has resubmitted its BTC ETF request to the SEC. This was a week after it filed for withdrawal on January 22. Gabor Gurbacs, who is a director at VanEck Asset Management, took to Twitter to express support for the BTC ETF.
He enumerated six ways on how the ETF could benefit those in the crypto world.
Six Ways BTC ETF Will Benefit the Public
ETF’s are quite popular with major investors in the fiat world who wish to invest in stocks, bonds, or commodities. Exposure of BTC to an ETF will most likely inject new capital into crypto. As a result, it will lead to more liquidity for the crypto community.
When the Gold ETF was approved in 2003, it led to significant liquidity into the asset class due to the inflow of capital.
Less Counter-Party Risk
ETFs are a much safer way to invest in an asset. This is because they come under the direct oversight of the SEC.
Besides that, they are traded on large exchanges with thousands of analysts globally checking them out often to ensure they are still safe.
Better Execution and Valuation
The crypto world still suffers from low-quality data. This is because there is no proper regulation and best practices have yet been established.
An ETF will be a reliable data source. It will ensure more reliable price discovery and form the benchmark for standards in the crypto space.
Today, most crypto exchanges deal with custody, valuation, and trading. With an ETF, various parties are responsible for this. This helps to ensure that everything is done with better efficiency.
ETFs charges lower fees than mutual funds. They usually work on a fee-based model. As a result, they usually have better transparency when it comes to fees charged.
Established Framework for Compliance
The BTC ETF will allow investors with cash to invest in this asset class, while still being compliant with the law. The ETF will legitimize BTC, which will open up new doors and inflows of money like has never happened in the past.
What the Crypto World Thinks
Some in the crypto world have expressed concern about the involvement of Wall Street in crypto assets. They feel that this goes against what BTC stands for. However, many agree that the ETF will have many benefits for the crypto world. Thus, they agree with Gabor.
VanEck is a major player in the ETF world and offers over 55 ETFs thus far. In fact, they helped establish the first Gold ETF in the US. There is still a lot of hope in the crypto community that a BTC ETF is going to be approved.
Gabor also ran a Twitter poll. He asked what crypto coin was after BTC. There were over 10 thousand replies and 46% of them choose XRP as the clear winner. ETH came in at a distant second, only managing to garner 24% of the votes.