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An explanation was given by a senior analyst at eToro as to why the VanEck’s ETF will gain SEC approval.

Exchange-traded funds for Bitcoin “entered” the crypto space as soon as the SEC started flirting with the idea of accepting proposals from CBOE and the VanEck SolidX Bitcoin Trust. Nevertheless, we have already witnessed the SEC rejection of an ETF proposal by the Winklevoss twins knowns as the Winklevoss Bitcoin Trust.

Although the SEC decision indicates the lack of confidence that the Winklevoss twins’ proposed product would be able to hold its own against price manipulation, there is a reason to believe that VanEck’s ETF will do it.

Mati Greenspan, eToro senior market analyst, belief is the following:

“The VanEck ETF is specifically designed to suit the needs of institutional investors. The contract size is set at 25 BTC, which is about $200,000 at today’s prices. So, [it’s] certainly not for your average Joe. When a hedge fund investor who manages billions of dollars is considering to diversify their portfolio into Bitcoin, they don’t want to deal with things like private keys and cold storage. They also need the assurance of a trusted counterparty and a regulated exchange. Furthermore, VanEck’s BTC ETF will be fully insured, which is a very comforting thought when dealing with this type of capital,”

Greenspan also discussed the following in a conversation on the social media.

At the end of the previous month, investment firm VanEck partnered with Blockchain startup SolidX to submit a proposal for a Bitcoin ETF as a duo, in order to be a more attractive deal for the SEC to give its approval. This happened after VanEck proposals’’ rejection a couple of times in the past. At the same time, CBOE suffered the same failures being the pioneer at the race of the first ETF for Bitcoin continues.

It is a fact that the interested firms will not go down without a fight, taking more interesting methods to coax the SEC to give its blessing and allow the market to take shape.

VanEck could be considered as one of the best contenders in this particular game. Still, having an insured product with a fully managed solution may have the desired from the SEC combination

 

 

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