VanEck Believes Ultimate Approval Date of a Bitcoin ETF is “Largely Inconsequential”
VanEck has been one of the most popularized applicants for the approval of a Bitcoin ETF. During the government shutdown, rather than becoming a lost request and being rejected automatically for the lack of public survey, the company withdrew, improving their product in a way that would be more solid for the Securities and Exchange Commission (SEC). Now, the deadline for their renewed application is getting closer, along with an application submitted by Bitwise Asset Management/
The VanEck/SolidX Bitcoin ETF application was originally published to the Federal Registrar on February 20th, giving it until April 6th before the deadline arrives. However, the SEC technically has a total of 240 days to arrive at a decision, and this deadline is not set in stone necessarily. Gabor Gurbacs, the Digital Asset Director of VanEck, said that the deadline itself is “largely inconsequential,” adding that the time and resources put into the development of the “backbone for an ETF” is just part of their continued hard work.
These “ETF deadlines” are largely inconsequential in my view. VanEck and SolidX has invested many years of building, market structure work as well time and significant resources to create the right backbone for an ETF. We continue to do the hard work to make this happen. 🙌
— Gabor Gurbacs (@gaborgurbacs) March 24, 2019
Before now, Gurbacs has been an advocate for the introduction of a Bitcoin ETF, saying that it will service the public interest. Furthermore, it will bring in an established compliance framework, more liquidity, and transparent fees. One of the most discussed topics around this potential approval has been in regard to the impact it will have on the price of Bitcoin.
While there has been nothing like this product before now, the researchers at Bitcoinist compared the potential to grow to that of gold, considering that Bitcoin is often referred to as
In March of 2003, the first gold-backed ETF was delivered by ETF securities, when it was trading at around $300. After the ETF was approved, the value slowly increased by $1,600 over the next eight years.
Still, the value of gold moves in a completely different way than Bitcoin, and it isn’t a surefire way to predict what could happen with the approval of a Bitcoin ETF. Still, the price charts between these two assets are eerily similar. Plus, gold has a huge market that is valued at over $8 trillion, while Bitcoin has less than $71 billion as its market cap, though the Winklevoss brothers have predicted the Bitcoin could pass the value of this precious mineral.