Gabor Gurbacs, the Director of Digital Assets Strategy at Vaneck, criticizes the U.S. SEC for its insistence on a cash-only requirement for spot Bitcoin ETFs.
Key Takeaways
- Gabor Gurbacs, Director of Digital Assets Strategy at Vaneck, criticizes the SEC’s cash-only requirement for spot Bitcoin ETFs.
- He describes the restriction as “Kabuki theatre” and argues that it is unnecessary given the significant holdings of Bitcoin by publicly listed companies.
- Gurbacs praises Hong Kong for allowing both cash and in-kind models for spot Bitcoin ETFs, suggesting that such flexibility provides a competitive advantage.
- The SEC is reviewing 13 spot Bitcoin ETF applications, and issuers are urged to adopt the cash creation method for inclusion in the initial batch of decisions.
SEC’s Cash-Only Restriction Criticized
Gabor Gurbacs, the Director of Digital Assets Strategy at Vaneck, has voiced strong criticism against the U.S. Securities and Exchange Commission (SEC) for its insistence on a cash-only requirement for spot Bitcoin exchange-traded funds (ETFs).
Gurbacs dismisses this stipulation as mere “Kabuki theatre” on the social media platform X, asserting that it makes no sense to restrict Bitcoin ETFs to cash transactions.
In his argument, Gurbacs highlights that publicly listed companies already possess substantial Bitcoin holdings on their balance sheets. These holdings, he notes, include Bitcoin acquired through various means such as transfers from trading platforms and mining activities.
#Vaneck Director: Nonsense to Restrict #Bitcoin ETFs to Cash Only https://t.co/GxMDKY1TWu
— Bitcoin.com News (@BTCTN) December 30, 2023
Praise for Hong Kong’s Approach
Expressing his dissatisfaction with the SEC’s stance, Gurbacs commends Hong Kong for adopting a more open-minded approach. Hong Kong’s Securities and Futures Commission (SFC) recently published rules allowing both cash and in-kind models for spot Bitcoin ETFs. Gurbacs suggests that this flexibility demonstrates a progressive regulatory environment, emphasizing that competition is heightened.
The director implies that the U.S. could benefit from relaxing its rules, aligning more closely with jurisdictions like Hong Kong. He sees this as a potential source of capital and competitive advantage in the evolving landscape of digital assets.
SEC Evaluates Spot Bitcoin ETF Applications
Currently, the SEC is in the process of reviewing 13 spot Bitcoin ETF applications, and Vaneck is among the issuers awaiting a decision. The SEC has reportedly engaged with various issuers, urging them to adopt the cash creation method if they wish to be considered in the initial round of spot Bitcoin ETF approvals.
To Conclude
Gabor Gurbacs’ criticism of the SEC’s cash-only requirement for spot Bitcoin ETFs underscores the ongoing debate around regulatory approaches to digital assets.
His praise for Hong Kong’s more flexible stance implies a call for regulatory adaptation in the U.S. to maintain competitiveness in the evolving global landscape of cryptocurrency investments. The ongoing evaluation of spot Bitcoin ETF applications by the SEC adds a layer of anticipation to how these regulatory decisions will shape the future of Bitcoin investment products in the U.S.
