VanEck Addresses Bitcoin ETF Withdrawal to Save Themselves from Government Shutdown Victimhood
One of the most wanted items by many cryptocurrency companies and consumers alike has been the Bitcoin ETF, a product meant to bring in institutional investors to the industry. Multiple applications have gone through the U.S. Securities and Exchanges Commission so far, but nothing has been approved. Though delayed multiple times, the VanEck Bitcoin ETF was recently gearing up in hopes of being the first approval when the government was shut down. Without knowing that the shutdown was almost over, VanEck withdrew the application.
This withdrawal caused a major stir in the entire community, considering that VanEck would have had a final decision made on it, had the proposal remained in effect. Before that point, the SEC had expressed that other applications were turned down due to the risk of market manipulation at the time. In an official statement, VanEck stated that the US Government shutdown was much of the cause of the withdrawal, though the shutdown ended just two days after the proposal was pulled.
Director of digital asset strategy for VanEck, Gabor Gurbacs, spoke on the recent turn of events while in an interview with CNBC Crypto Trader. Part of his interview also focused on why VanEck continues to believe that pulling the proposal was in the company’s best interest, a decision made by the investment management fund.
The interview started by Gurbacs being question on if this withdrawal was hasty, but he quickly said that the shutdown made it impossible to meet the deadline, putting them at risk for denial anyway. He said,
“[W]e withdrew our application because we didn’t want to slip through the cracks. And potentially like, you know, a few months long government shutdown, so I think we did the right thing.”
Gurbacs continued, saying that there is still a lot of work that needs to be done between the SEC and VanEck that would support an ETF. There are three areas that the company has primarily settled in a way that they feel the SEC would approve of – pricing, custody, and market manipulation.
Explaining, Gurbacs said,
“We believe that we have reasonably good answers to all of those questions, but it takes time to iterate it with them and you know when there’s no one in the office and no one picks up the calls and you can’t solve this question. So, I certainly wouldn’t want to get an answer that might not be the answer what we wanted for the idea because everyone is out in the office.”
Ran NeuNer posted to Twitter about the show, posting a link to the show that went over multiple issues in the crypto industry. The video below and is hosted out of Mexico. For consumers that want to specifically view the portion of the video with Gurbacs, move ahead to around the 18:00 mark