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Bitcoin ETF In The US? VanEck's Boss Says 'Forget It'

Published 19/05/2023, 20:35
© Reuters.  Bitcoin ETF In The US? VanEck's Boss Says 'Forget It'

Benzinga - Jan Van Eck, the CEO of VanEck, an investment management firm, has predicted a bleak future for the launch of a Bitcoin-spot exchange-traded fund (ETF) in the United States, dismissing any near-term chances of approval.

He expressed this sentiment during a discussion at the ongoing Bitcoin 2023 Conference in Miami Beach.

Van Eck said, "There's simply no likelihood," referring to the ongoing case between the U.S. Securities and Exchange Commission (SEC) and Grayscale Investments.

Grayscale, a significant asset manager, is seeking to morph its Bitcoin (CRYPTO: BTC) trust into an ETF.

However, Van Eck is skeptical, suggesting that even if the SEC were to lose the lawsuit, the commission might continue to delay the process, thereby stalling the introduction of a Bitcoin-spot ETF in the next 18 months.

Furthermore, Van Eck brought attention to recent filings from competing ETF companies for Ether (CRYPTO: ETH)-futures-based funds, noting that at least three of them had to be modified or withdrawn shortly after their initial submission.

He believes this to be indicative of future foot-dragging from the SEC, saying, "They have a variety of regulatory tools at their disposal."

Also Read: Hong Kong-Based Hashkey's Billion-Dollar Dream: The Next Big Bang In Crypto

The crypto industry has been vying for a Bitcoin ETF in the U.S. for some time, but regulators have shown a great deal of reluctance to grant approval.

Regulatory concerns about market manipulation have often been invoked as a reason for their hesitancy.

However, Bitcoin-futures funds have been trading since 2021, and many of the potential issues that were previously flagged have since been resolved.

VanEck manages several ETFs and has made strides in the crypto space.

In 2021, it introduced the VanEck Bitcoin Strategy ETF (BATS: XBTF) which is based on Bitcoin futures.

However, a proposal by VanEck for an ETF that would directly hold Bitcoin was turned down by the SEC at the end of the same year.

Read Next: Crypto's Wild West Era Is Over: Here's How The Big Dogs Are Taking Over

Photo: Shutterstock

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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