Amid the long-awaited approval of a Bitcoin ETF by the US Securities and Exchange Commission (SEC), the price of BTC has seen a remarkable surge of 23% over the past fourteen days. However, SEC Chair Gary Gensler, who has been at the forefront of the SEC’s crackdown on the crypto...
However, SEC Chair Gary Gensler, who has been at the forefront of the SEC’s crackdown on the crypto industry, has taken a notable stance against the idea of Bitcoin exchange-traded funds for both institutional and retail investors.
SEC Chair Gensler’s Resurfaced Video Sparks Controversy
The video, recorded at an unknown date, captures Gensler’s perspective on the matter. In the video, Gensler states:
I think Bitcoin and Ethereum futures will exist, and Bitcoin ETFs have not, and that feels a little inconsistent for me… even though the laws say that they are quite similar.
VanEck Proposes Unique Seeding Approach In Amended Spot Bitcoin ETF
Using real BTC, VanEck aims to bridge the gap between the ETF and the underlying asset, providing investors with a more direct and authentic investment opportunity.
The utilization of real Bitcoin for seed funding carries several potential advantages. Firstly, it allows the ETF to mirror the performance of Bitcoin more closely, as the value of the ETF will be tied directly to the fluctuating price of the digital asset.
This ensures that investors can gain exposure to Bitcoin’s price movements without needing direct ownership or custody of the cryptocurrency.
Moreover, VanEck’s approach offers investors immediate access to Bitcoin through the ETF upon its approval. This instant exposure to Bitcoin could appeal to investors seeking a regulated and accessible vehicle to invest in the cryptocurrency market.
While VanEck’s amended spot Bitcoin ETF application signals a fresh perspective on seeding strategies, it remains subject to regulatory approval. The SEC is yet to provide a definitive timeline for the approval of a spot Bitcoin ETF.
However, VanEck’s approach, utilizing real BTC for seed funding, may contribute to the ongoing discussions surrounding the regulatory framework for cryptocurrency ETFs.
Featured image from Shutterstock, chart from TradingView.com