On Tuesday (June 22), Jan F. van Eck, the President and CEO of global investment manager Van Eck Associates Corporation (“VanEck” for short), explained why it is important for the U.S. Securities and Exchange Commission (SEC) to “approve a Bitcoin ETF.”
His comments came just six days after the SEC delayed for the second time its decision on whether to approve the VanEck Bitcoin ETF (called “VanEck Bitcoin Trust”) proposal. The VanEck CEO was asked by CNBC reporter Bob Pisani on CNBC’s “ETF Edge” if we are going to see a Bitcoin ETF get approved this year.
The VanEck CEO replied:
“Bob, you know, we really think the SEC should approve a bitcoin ETF. The only alternative investors have is a closed-end fund that trades it at 40% premium or 20% discount and Bitcoin futures… aren’t any better because of the shape of the futures curve. There’s a futures-based fund that underperformed Bitcoin by 22% last year and 8% this year. So, you can’t predict what the SEC will do, but investors are really asking for a more efficient access vehicle.“
Pisano also had another guest, Ric Edelman, the No. 1 registered investment advisor in the United States and the founder of Edelman Financial Engines, who was asked what he is telling financial professionals about cryptoassets.
“They need to learn, Bob, [that] this isn’t going away. This is the first major new asset class in 150 years. It is totally unlike anything else we’ve ever experienced, not like stocks or bonds or real estate or gold. Advisors are getting an incredible number of questions from clients. They need to learn what they’re talking about to be able to help clients the way they should.“
Edelman went on to say:
“It’d be so much easier and simpler if there was a bitcoin ETF. That’s not here and it’s not going to be in the foreseeable near future, so you can’t continue to sit on the sidelines waiting for it because by the time the SEC says yes to it, bitcoin might be 100,000… You’re going to miss out, so, you’ve got to move on with the investment opportunities that do exist.“
According to a report by Coindesk, VanEck filed a draft prospectus for a Bitcoin futures mutual fund with the SEC on Monday. According to this prospectus, the “Bitcoin Strategy Fund” will “invest in certain Bitcoin Futures through a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands.” The Fund may “also invest in pooled investment vehicles and exchange-traded products that provide exposure to bitcoin through the Subsidiary.”
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.