A Bitcoin ETF has been one of the most desired products in the cryptocurrency space. The entire space has been waiting for the approval of one for several years with their hopes held high that this would open the doors for institutional investors. However, the space has not yet seen an ETF they prefer, to pass the U.S Securities and Exchanges Commission [SEC] judgment.
More so, a majority of the space had its expectation hung on a single ETF, the VanEck Bitcoin ETF, which would have been up for its final decision this month if the firm had not decided to withdraw the proposal. Prior to this action, the firm had stated that they had a solution for all the concerns of the regulatory body pertaining to the approval of the ETF such as market manipulation.
According to the official statement, the proposal for the exchange-traded fund was withdrawn because of the U.S Government shutdown. Much to the firm’s dismay, Donald Trump, President of the United States, decided to end the government shutdown two days after VanEck Bitcoin ETF was withdrawn.
Gabor Gurbacs, Director of Digital Asset strategy at VanEck, spoke about the recent turn of events, during a recent interview with CNBC Crypto Trader. He also laid down the reason as to why pulling the proposal was a good decision made by the investment management fund.
Gurbacs started by speaking about whether the firm made a hasty decision of withdrawing the ETF. Here, he stated that the company did not have a proper timeframe as to when the shutdown would come to an end. He added that it had already been over 35 days since the shutdown.
“we withdrew our application because we didn’t want to slip through the cracks. And potentially like, you know, a few months long a government shutdown, so I think we did the right thing”
This was followed by the Director speaking about whether there was a lot of pending work that had to be completed between the firm and the regulatory body that concerned the ETF. Gurbacs stated that the firm did have work that had to be completed in three major areas: pricing, custody and market manipulation.
“We believe that we have reasonably good answers to all of those questions but it takes time to iterate it with them and you know when there’s no one in the office and no one picks up the calls and you can’t solve this question. so I certainly wouldn’t want to get an answer that might not be the answer what we wanted for for the idea because everyone is out in the office.”