The publication of a Bitcoin Exchange Traded Fund (ETF) could cause the crypto-space to attract billions of dollars, according to Van Eck’s chief strategist Gabor Gurbacs.
VanEck’s Digital Assets Strategy Director made the optimistic outlook in an interview with CNBC and outlined what might happen when the Bitcoin ETF is approved. He acknowledged that it is very likely that billions of institutional dollars in securities will enter the crypto market, largely because ETFs are better designed to protect investors.
“Currently 90 to 95 percent of digital assets are retail. So people are investing through trading platforms that offer almost no collateral. Investors are not used to that.”
The VanEck Bitcoin ETF has the best chance
The ETF application submitted by VanEck-SolidX has been approved for review, the application of which is expected to be decided by 29 December of this year or by 1 February of the following year (if the allowable deferment is used). There are currently nine other ETF filings with the SEC for review, where users had the opportunity to submit comments by November 5, 2018, why one is pro or contra Bitcoin ETF.
Many believe that VanEck, a veteran investment management firm with years of professional relationships with US regulators, has taken care of all of the SEC’s concerns and is likely to be approved.
The argument of market manipulation
Market manipulation of the underlying Bitcoin market was one of the main reasons behind the previous refusals by the SEC. Gurbacs acknowledged that every other market also contained some manipulation by referring to the JP Morgan trader, who manipulated the commodity and precious metal markets for seven years. In addition, the Vaneck strategist stated that the SEC is not actually responsible for the regulation of spot markets, as this is the task of the Commodity Futures Trading Commission (CFTC).
Gurbacs emphasized that security measures have been introduced at the institutional level, starting with unchangeable price sources in conjunction with standard off-the-shelf tools that reduce manipulation.
“If there are market manipulations, there are concerns. We have done everything we can.”
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Virtual currency is in many countries not legal tender, or is not backed by the government, and accounts and value balances are not subject to consumer protections. The information does not constitute investment advice or an offer to invest.
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