The approval of Spot Bitcoin ETFs in January started a frenzy as investors poured billions of dollars into brand new investment vehicles launched by financial giants like BlackRock and Fidelity. However, despite the asset class's total trading volume exceeding $200 billion, Jan van Eck, CEO of asset management firm Van Eck, one of the major issuers, He said that coin ETFs are still in their early stages.
talk to luck On the sidelines of Paris Blockchain Week, Van Eck said that although there are reports that companies such as Morgan Stanley are evaluating Bitcoin ETFs, brokerage platforms are still not recommending Bitcoin ETFs to advisors. said that it is not allowed. “These are our largest customer base,” Van Eck said. luck. “So we have a long way to go.”
For now, demand is primarily coming from retail customers, but he expects that to change as platforms receive approval to start selling Bitcoin ETFs. “In this world, paper moves first, then decisions are made,” Van Eck said, predicting that change could occur this quarter.
“Don't disturb me.”
VanEck was founded by Van Eck's father in 1955 and has been at the forefront of alternative assets for many years. Concerned about inflation, John Van Eck shifted his focus to gold investing and launched the first gold stock fund in the United States in 1968. “If you're running a business, you have to make sure there's no confusion,” his son says.Said luck.
In 2017, Van Eck became the first ETF issuer to apply for a spot Bitcoin ETF, several years after Winklevoss-led Gemini filed for a Bitcoin ETF in 2013. The Securities and Exchange Commission rejected the potential issuer, and Grayscale, whose approval process ended up going after the cryptocurrency, sued the agency to convert its Bitcoin trust into an ETF.
Currently, seven companies, including VanEck, have applied for a Spot Ethereum ETF, and VanEck expressed skepticism that the authorities will move forward with approval. “Paperwork typically precedes regulatory action,” he said. “There are no formalities required on paper.”
He added that seeking agency approval would likely require another lawsuit, but that interested parties may be losing appetite for another lengthy legal battle. .
“People thought they were completely crazy.”
With 12 Bitcoin ETFs crowded together, the question is whether the space will consolidate as some issuers exit or acquire competitors. VanEck currently ranks in the middle of the pack with about $600 million in assets under management, with BlackRock and Fidelity running away in this space.
Van Eck said he was pleased with the progress the company has made despite its late start. “We hope to invest $600 million in ETFs in the first three months,” he said. luck. “Statistically, there's probably a 1% chance of that happening in the ETF industry.” Still, he cautioned that autos aren't profitable because of the low management fees charged by many issuers.
Another question is whether issuers will branch out to other custodians after all but VanEck initially chose Coinbase. VanEck chose Gemini instead, which VanEck said was a “tip of the hat” for the company's first application for a Bitcoin ETF. “When I applied, people thought I was completely crazy,” he said. luck. He added that the company plans to add a backup custodian soon.
VanEck is also expanding into other areas of cryptocurrency. In early April, Van Eck's son Nick announced the launch of his own digital asset company, a stablecoin company called Agora. Just as Cantor Fitzgerald holds U.S. Treasuries for Tether, his father's company will act as a custodian of its reserves.
Despite Tether's dominance in the stablecoin world, Van Eck said there is room for competition, especially given Tether's wildcat status in the U.S., adding that “many companies are waiting for regulatory approval. I am receiving it,” he said. luck. “There is plenty of room for AC to use other stables.”
