The cryptocurrency industry is trying to receive the approval of a crypto exchange-traded fund (ETF) since a very long time. The Winklevoss twins have proposed their ETFs several times to the U.S. Securities and Exchange Commission (SEC) but they have been systematically rejected.
Nevertheless, there is a company that might be very close to receiving approval from the SEC to start operating a Bitcoin ETF. During a conversation at FOX Business, Gabor Gurbacs, director of digital asset strategies at VanEck said that they are very close to receiving approval from the SEC.
He explained that American citizens want a Bitcoin ETF and VanEck is working in order to build it following the current regulatory environment. The new ETF proposal made by VanEck is physically-backed by Bitcoin (BTC). At the same time, Gurbacs explained that if also fits into the US capital markets and regulatory system. This is why they are expecting an approval on this ETF since according to him, it meets every single requirement that such kind of fund would need.
Clearly, this would set a precedent in the market and it would clearly allow several new investors to enter the market. However, this is not what everyone thinks. Mike Novogratz said that all the pillars needed to bring new institutions to the market are being put in their correct place and after that more funds will start to enter the market.
And Mr Gurbacs thinks in the same way. He explained that they have proper custody solutions, proper pricing futures contracts and trading, companies such as VanEck that built the first gold fund in the US, and many more other things.
Gurbacs said about it:
“We have the right institutions and we have the right market structure so it’s time to give America what it wants: a Bitcoin ETFs.”
There are other financial experts such as Jamie Dimon and Warren Buffet that do not believe in Bitcoin and cryptocurrencies. Indeed, Buffet said that Bitcoin is rat poison and Dimon said that Bitcoin will be crashed by governments. Nonetheless, Gurbacs is very positive about Bitcoin, he believes that Bitcoin is digital gold. Additionally, he mentioned that the US has a leading capital market and has the possibility to take the lead in the future financial world.
The entry point for this ETF is 25 BTC in order to avoid smaller investors gain exposure to the cryptocurrency market.