Amidst the clash between crypto businesses and the U.S. government, VanEck is one of the prominent traditional financial institutions to seek SEC’s approval on Bitcoin ETF-like product to traditional institutions, aimed at driving the U.S. economy for the next decade. The company’s Director of Digital Asset Strategy, Gabor Gurbacs, featured in an interview to discuss how VanEck’s “144a product” would play a role in providing institutions the freedom to use Bitcoin like the general public. He added,
“As far as the Wall Street goes, this the most trust-minimized structure that exists out there and I think it works out for the investor.”
Supporting this message, Gurbacs also stressed on the fact that mutual funds are losing value to ETFs (exchange-traded funds) and hedge funds business are dying out because of ETFs. Some of the primary reasons behind this change was attributed to increased transparency and cheaper transaction fees. Gurbacs also added that ETF can be considered as “Bitcoin-backed fiat notes that have much better legal protection, ownership and transparency.”
Gurbacs stressed upon the fact the while Bitcoin is speculated to replace fiat in the long run, it is not practical to expect the entire general public to be capable and get their hands on Bitcoins. Another impeding roadblock that stands against Bitcoin’s mainstream adoption is the “fiduciary duty” that enforces hedge funds and pension funds banks to “hold assets on behalf of others.” The prominent technologist also claimed,
“What people need is transparency around the holdings prices and appropriate liquidity, and crypto exchanges don’t have that.”
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