The U.S. SEC’s Cash-Only Requirement for Spot Bitcoin ETFs is “Nonsense,” Says Vaneck’s Director

Vaneck's Director Calls SEC's Requirement "Nonsense"

Gabor Gurbacs, the director of Digital Assets Strategy at asset management firm Vaneck, has criticized the U.S. Securities and Exchange Commission (SEC) for its cash-only requirement for spot bitcoin exchange-traded funds (ETFs). He referred to this requirement as "Kabuki theatre" and believes it is unnecessary to restrict bitcoin ETPs to cash only.

Publicly Listed Companies Already Hold Billions of Dollars in Bitcoin

Gurbacs points out that many publicly listed companies already hold billions of dollars in bitcoin on their balance sheets. These companies have acquired bitcoin through various means, such as transfers from trading platforms and mining. This demonstrates that the cash-only requirement is not justified, as there are already significant holdings of bitcoin by publicly listed companies.

Hong Kong Allows Both Cash and In-Kind Models for Spot Bitcoin ETFs

Gurbacs praises Hong Kong for its more open-minded approach to spot bitcoin ETFs. He highlights that Hong Kong allows both the cash and in-kind models for these ETFs. Gurbacs believes that relaxing the rules in the U.S. will provide a capital and competitive advantage, as other jurisdictions are more accommodating to different ETF creation methods.

The SEC Considers 13 Spot Bitcoin ETF Applications

The SEC is currently reviewing 13 spot bitcoin ETF applications, including one from Vaneck. The regulator has been pushing issuers to use the cash creation method if they want to be included in the first batch of spot bitcoin ETF decisions. Gurbacs, however, predicts that the cash-only requirement will not hold out for long, as in-kind creations and redemptions are more efficient and beneficial for investors.

What are your thoughts on the SEC's cash-only requirement for spot bitcoin ETFs? Share your opinions in the comments below.

Frequently Asked Questions

What is the best precious metal to invest in?

The answer to this question depends on how much risk you are willing to take and what type of return you want. Although gold has been considered a safe investment, it is not always the most lucrative. Gold may not be right for you if you want quick profits. Silver is a better investment if you have patience and the time to do it.

If you don’t want to be rich fast, gold might be the right choice. If you want to invest in long-term, steady returns, silver is a better choice.

What Precious Metals Can You Invest in for Retirement?

Silver and gold are two of the most valuable precious metals. Both can be easily bought and sold, and have been around since forever. They are a great way to diversify your portfolio.

Gold: Gold is one the oldest forms currency known to man. It is very stable and secure. Because of this, it's considered a good way to preserve wealth during times of uncertainty.

Silver: Silver has always been popular among investors. This is a great choice for people who want to avoid volatility. Silver tends to move up, not down, unlike gold.

Platinum: A new form of precious metal, platinum is growing in popularity. It is very durable and resistant against corrosion, much like silver and gold. It's also more expensive than the other two.

Rhodium: Rhodium is used in catalytic converters. It is also used in jewelry-making. And, it's relatively cheap compared to other types of precious metals.

Palladium (or Palladium): Palladium can be compared to platinum, but is much more common. It's also much more affordable. This is why it has become a favourite among investors looking for precious metals.

What Is a Precious Metal IRA?

A precious metal IRA lets you diversify your retirement savings to include gold, silver, palladium, rhodium, iridium, osmium, osmium, rhodium, iridium and other rare metallics. These rare metals are often called “precious” as they are very difficult to find and highly valuable. They are great investments for your money, and they can protect you from inflation or economic instability.

Precious metals are sometimes called “bullion.” Bullion refers actually to the metal.

You can buy bullion through various channels, including online retailers, large coin dealers, and some grocery stores.

You can invest directly in bullion with a precious metal IRA instead of buying shares of stock. This means you'll receive dividends every year.

Precious metal IRAs have no paperwork or annual fees. Instead, you pay only a small percentage tax on your gains. You also have unlimited access to your funds whenever and wherever you wish.

Is it a good idea to open a Precious Metal IRA

You should be aware that precious metals cannot be covered by insurance. If you lose money in your investment, nothing can be done to recover it. All your investments can be lost due to theft, fire or flood.

Investing in physical gold and silver coins is the best way to protect yourself from this type of loss. These items have been around for thousands of years and represent real value that cannot be lost. These items are worth more today than they were when first produced.

Consider a reputable business that offers low rates and good products when opening an IRA. Consider using a third-party custody company to keep your assets safe and allow you to access them at any time.

When you open an account, keep in mind that you won't receive any returns until your retirement. Remember the future.


  • Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (
  • (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.) (
  • Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (
  • Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (
  • This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (

External Links

How To

Guidelines for Gold Roth IRA

Start saving as soon as possible to save for your retirement. Start saving as soon and as often as you're eligible (usually around 50 years old) and keep going until retirement. It's vital to contribute enough money each year to ensure adequate growth on an ongoing basis.

Additionally, tax-free opportunities like a traditional 401k or SEP IRA are available. These savings vehicles permit you to make contributions, but not pay any tax until your earnings are withdrawn. This makes them a great choice for people who don’t have access employer matching funds.

It's important to save regularly and over time. If you aren't contributing the maximum amount permitted, you could miss out on tax benefits.

By: Kevin Helms
Title: The U.S. SEC's Cash-Only Requirement for Spot Bitcoin ETFs is “Nonsense,” Says Vaneck's Director
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Published Date: Sat, 30 Dec 2023 06:30:40 +0000

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