Van Eck: SEC should approve bitcoin ETFs

After the recent further postponement of the SEC decision regarding bitcoin ETFs, Van Eck Associates CEO Jan van Eck has made it clear that he believes the agency should approve them.

In fact, during an interview with CNBC he stated:

“We really think the SEC should approve a bitcoin ETF. The only alternative available to investors is a closed-end fund that exchanges it for a 40% premium or a 20% discount [the Grayscale Bitcoin Trust] ”.

According to van Eck, the market demand for this product exists, and would justify its issue. He also pointed out how bitcoin futures, which have already been on the market for several years, are different due to the “shape of the curve”, noting for example that a fund based on these futures underperformed BTC by 22% last year. and 8% this year.

Van Eck: SEC will still postpone approval of Bitcoin ETFs
However, Van Eck speculates that even in August the SEC will postpone the decision , taking all the time necessary to deliberate, given that the bitcoin ETF is not at the top of their concerns.

The same interview also spoke with investment advisor and founder of Edelman Financial Engines, Ric Edelman, who stated that cryptocurrencies are the first major new asset class in 150 years , totally unlike anything we’ve experienced before.

He then added:

“It would be much easier and simpler if there was a bitcoin ETF. It’s not here and it won’t be in the foreseeable future, so you can’t keep sitting on the sidelines waiting for it because when the SEC says yes, bitcoin could be $ 100,000. You will miss something, so you have to move forward with the investment opportunities that exist ”.

CNBC also reports that several US companies are releasing bitcoin-related funds to meet this demand currently not covered by ETFs, and this seems to clash somewhat with the SEC’s reluctance to admit such products to the US market.

According to Harvard University Kennedy School of Government researcher Timothy Massad, the crypto market has grown, but there is still a lack of basic standards found in the security markets and traditional exchanges.

Probably until the crypto market manages to align itself with these traditional standards, the SEC will always have a hard time accepting the existence of ETFs on bitcoin , also and above all intended for retail investors. In fact, the agency fears that these investors may be vulnerable to fraud and manipulation of this market, still so young and immature, and this could also constitute a momentarily insurmountable obstacle for the approval of bitcoin ETFs .

 

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