The U.S. SEC’s Cash-Only Requirement for Bitcoin ETFs is “Nonsense,” Says Vaneck Director

An Absurd Requirement

The director of Digital Assets Strategy at asset management firm Vaneck, Gabor Gurbacs, has criticized the U.S. Securities and Exchange Commission (SEC) for its cash-only requirement for spot bitcoin exchange-traded funds (ETFs). Gurbacs believes that this requirement is unnecessary and called it "nonsense" on social media platform X.

Public Companies Already Hold Billions in Bitcoin

Gurbacs pointed out that publicly listed companies already hold billions of dollars in bitcoin on their balance sheets. These companies have acquired bitcoin through various means, including transfers from trading platforms and mining activities.

Hong Kong Takes a More Open-Minded Approach

Gurbacs praised Hong Kong for its more open-minded approach towards spot bitcoin ETFs. He mentioned that the Hong Kong Securities and Futures Commission (SFC) allows both the cash and in-kind models for these ETFs. He expressed his admiration for Hong Kong's regulatory stance and suggested that relaxing rules in the U.S. would provide a competitive advantage.

The SEC's Consideration of Bitcoin ETF Applications

The SEC is currently reviewing 13 spot bitcoin ETF applications, one of which is from Vaneck. The regulator has been in discussions with various issuers, urging them to use the cash creation method. However, Gurbacs believes that this requirement will not last long, as in-kind creations and redemptions are more efficient and beneficial for investors.

Final Thoughts

Gurbacs's criticism of the SEC's cash-only requirement for bitcoin ETFs highlights the need for more flexible regulations in the cryptocurrency industry. As publicly listed companies continue to hold significant amounts of bitcoin, it becomes increasingly important to adopt efficient and investor-friendly methods for creating and redeeming ETFs. Only time will tell how the SEC responds to the growing demand for spot bitcoin ETFs.

What are your thoughts on Gurbacs's statements? Share your opinions in the comments section below.


How To

3 Ways to Invest Gold for Retirement

It is important to understand the role of gold in your retirement plan. If you have a 401(k) account at work, there are several ways you can invest in gold. You might also be interested to invest in gold outside the workplace. A custodial account can be opened by a brokerage firm like Fidelity Investments if you already have an IRA. Or, if you don't already own any precious metals, you may want to consider buying them directly from a reputable dealer.

These are the three rules to follow if you decide to invest in gold.

  1. Buy Gold with Cash – Avoid using credit cards or borrowing money to fund investments. Instead, invest in cash. This will protect your against inflation and increase your purchasing power.
  2. Physical Gold Coins You Should Buy – Physical gold coins should be purchased over a paper certificate. Physical gold coins are easier to sell than certificates. There are no storage fees for physical gold coins.
  3. Diversify your Portfolio. This is how you spread your wealth. You can invest in different assets. This can reduce market volatility and help you be more flexible.


By: Kevin Helms
Title: The U.S. SEC's Cash-Only Requirement for Bitcoin ETFs is “Nonsense,” Says Vaneck Director
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Published Date: Sat, 30 Dec 2023 06:30:40 +0000

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