Director of Digital Assets Strategy at Vaneck Calls SEC’s Cash-Only Requirement for Bitcoin ETFs “Nonsense”

Spot Bitcoin ETFs Shouldn't Be Restricted to Cash Only, Says Vaneck Director

Gabor Gurbacs, the Director of Digital Assets Strategy at asset management firm Vaneck, has criticized the U.S. Securities and Exchange Commission (SEC) for requiring spot Bitcoin exchange-traded fund (ETF) issuers to use the cash creation method instead of the in-kind model for their crypto exchange-traded products (ETPs). In a post on social media platform X, Gurbacs described this requirement as "Kabuki theatre" and stated that it is nonsensical to restrict Bitcoin ETPs to cash only.

Publicly Listed Companies Already Hold Billions of Dollars in Bitcoin

Gurbacs pointed out that publicly listed companies already hold billions of dollars in Bitcoin on their balance sheets. These companies have acquired Bitcoin through various means, including transfers from trading platforms and mining. This demonstrates that Bitcoin is already widely accepted as a legitimate asset by mainstream institutions.

Hong Kong Takes a More Open-Minded Approach

Gurbacs praised Hong Kong for allowing both the cash and in-kind models for spot Bitcoin ETFs. He expressed admiration for the fact that even Hong Kong, a Special Administrative Region of China, is more open-minded than U.S. regulators. Gurbacs believes that relaxing rules and embracing different models will give countries a competitive advantage in attracting capital.

The Hong Kong Securities and Futures Commission (SFC) recently published rules that allow funds to launch spot Bitcoin ETFs using both cash and in-kind methods.

SEC Considering 13 Spot Bitcoin ETF Applications

The SEC is currently reviewing 13 spot Bitcoin ETF applications, including one from Vaneck. The regulator has been in discussions with various issuers and has been pushing for them to use the cash creation method. However, Gurbacs believes that this requirement will not hold out for long. He argues that in-kind creations and redemptions are more efficient and beneficial for investors, and issuers will fight for the inclusion of these models.

What are your thoughts on Gabor Gurbacs' statements regarding the SEC's cash-only requirement for Bitcoin ETFs? Share your opinions in the comments section below.

Frequently Asked Questions

What precious metals do you have that you can invest in for your retirement?

Silver and gold are two of the most valuable precious metals. Both are easy to sell and can be bought easily. They are a great way to diversify your portfolio.

Gold: Gold is one of man's oldest forms of currency. It's stable and safe. This makes it a good option to preserve wealth in uncertain times.

Silver: Silver is a popular investment choice. It's an ideal choice for those who prefer to avoid volatility. Silver is more volatile than gold. It tends to rise rather than fall.

Platinium: Another form of precious metal is platinum, which is becoming more popular. It's resistant to corrosion and durable, similar to gold and silver. However, it's much more expensive than either of its counterparts.

Rhodium. Rhodium is used as a catalyst. It is also used for jewelry making. It is relatively affordable when compared to other types.

Palladium (or Palladium): Palladium can be compared to platinum, but is much more common. It's also more accessible. It is a preferred choice among investors who are looking to add precious materials to their portfolios.

What are the advantages of a gold IRA

You can save money on retirement by putting your money into an Individual Retirement Account. It will be tax-deferred up until the time you withdraw it. You can decide how much money you withdraw each year. There are many types of IRAs. Some are more suitable for students who wish to save money for college. Others are intended for investors seeking higher returns. Roth IRAs are a way for individuals to make contributions after the age of 59 1/2, and then pay taxes on any earnings upon retirement. The earnings earned after they withdraw the funds aren't subject to any tax. So if you're planning to retire early, this type of account may make sense.

A gold IRA is similar to other IRAs because it allows you to invest money in various asset classes. Unlike a regular IRA which requires taxes to be paid on gains as you wait to withdraw them, a IRA with gold allows you to invest in multiple asset classes. This makes gold IRA accounts a great choice for those who want their money to be invested, not spent.

Another benefit of owning gold through an IRA is that you get to enjoy the convenience of automatic withdrawals. You won't have the hassle of making deposits each month. To avoid missing a payment, direct debits can be set up.

Gold is one of today's most safest investments. Its value is stable because it's not tied with any one country. Even during economic turmoil, gold prices tend to stay relatively stable. This makes it a great investment option to protect your savings from inflation.

Do You Need to Open a Precious Metal IRA

You should be aware that precious metals cannot be covered by insurance. There are no ways to recover the money you lost in an investment. All your investments can be lost due to theft, fire or flood.

You can protect yourself against such losses by purchasing physical gold and silver coins. These items are timeless and have a lifetime value. If you were to offer them for sale today, they would likely fetch you more than you paid when you bought them.

You should choose a reputable firm that offers competitive rates. You should also consider using a third party custodian to protect your assets and give you access at any time.

Do not open an account unless you're ready to retire. Do not forget about the future!

Statistics

• If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
• Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
• Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
• (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
• Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)

External Links

cftc.gov

• Fraud Advisory: Precious Metals Fraud | CFTC
  

irs.gov

• Retirement Topics – IRA Contribution Limits
  

wsj.com

• Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
  
• How do you keep your IRA Gold at Home? It's Not Exactly Lawful – WSJ
  

bbb.org

• Better Business Bureau(r)
  

How To

The best way to buy gold (or silver) online

To buy gold, you must first understand how it works. Gold is a precious metal similar to platinum. Because of its resistance to corrosion and durability, it is very rare. It is hard to use, so most people prefer jewelry made of it to real bars of gold.

There are two types currently available: legal tender and bullion. Legal tender coins can be used for circulation within a country. These coins usually come in denominations such $1, $5 and $10.

Bullion coins are only minted to be used for investment purposes. Their value increases over time because of inflation.

They cannot be used in currency exchanges. For example, a person who buys $100 worth or gold gets 100 grams. This gold has a $100 price. For every dollar spent, the buyer gets 1 gram of Gold.

You should also know where to buy your gold. You have a few options to choose from if you are looking to buy gold directly through a dealer. First off, you can go through your local coin shop. You can also go to a reputable website such as eBay. Finally, you can look into purchasing gold through private sellers online.

Private sellers are individuals who offer to sell gold at retail or wholesale prices. You pay a commission fee between 10% and 15% for each transaction when you sell gold through private sellers. You would receive less money from a private buyer than you would from a coin store or eBay. This option is often a great choice for investing gold as it allows you more control over its price.

You can also invest in gold physical. While physical gold is easier than paper certificates to store, you still need to make sure it is safe. It is important to keep your physical gold safe in an impenetrable box such as a vault, safety deposit box or other secure container.

To purchase gold by yourself, you can visit a bank and a pawnshop. A bank will provide you with a loan that allows you to purchase the amount of gold you desire. These are small businesses that let customers borrow money against the items they bring to them. Banks usually charge higher interest rates that pawn shops.

The final option is to ask someone to buy your gold! Selling gold is also easy. Set up a simple account with GoldMoney.com and you will start receiving payments instantly.

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By: Kevin Helms
Title: Director of Digital Assets Strategy at Vaneck Calls SEC's Cash-Only Requirement for Bitcoin ETFs “Nonsense”
Sourced From: news.bitcoin.com/secs-cash-only-restriction-for-spot-bitcoin-etf-is-nonsense-says-vaneck-director/
Published Date: Sat, 30 Dec 2023 06:30:40 +0000