VanEck baffled by the impact of Shutdown on Bitcoin ETF application

By CCN.com: The investment manager VanEck remains confident about its application to bitcoin ETF, despite the closure of the US government. Why? Because the company believes it has laid a solid foundation for the VanEck / SolidX Bitcoin ETF to eventually obtain SEC approval.

"I have done everything to create the right market structure for Bitcoin and digital badets," Gabor Gurbacs, director of VanEck's badet strategy, told CCN on Twitter.

The Securities and Exchange Commission has suspended all administrative functions due to the ongoing closure, according to a statement of 16 January.

The SEC has until February 27 to approve or reject the VanEck ETF Bitcoin application. According to CCN, the agency has delayed making a decision several times in 2018.

Lawyer: Prolonged shutdown reduces chances of automatic SEC approval

According to Blockchain's lawyer, Jake Chervinsky, the bid for VanEck's Bitcoin ETF will not be automatically approved in the event that the closure would last beyond February 27th.

"The last deadline for the SEC to approve or deny the ETF is February 27," Chervinsky said on Twitter. "It is 240 days after the first publication of the ETF proposal in the Federal Register."

The SEC does not have the power to extend the 240-day time limit. The law absolutely forbids any further delay.

By law, this means that if the SEC does not make a decision by the February 27 deadline, the ETF will automatically be approved.

5 / It is true that the SEC stopped almost all of its work because of the closure of its system and put most of its employees on leave (they have to stay at home).

This includes the majority of the staff of the Trading & Markets Division, which manages the proposed rule changes (including ETFs).

– Jake Chervinsky (@jchervinsky) January 18, 2019

Chervinsky said that a small SEC team was working during the closure to make sure the agency did not miss deadlines.

In the current state of affairs, regulators generally tend to prefer to be overly restrictive rather than restrictive enough.

"If closure continues until February 27, I think the chances of ETF approval are close to zero," said Chervinsky.

Chervinsky says he could be wrong, but warned that the closure would not increase the odds of approval of the Bitcoin ETF.

Stop Gabor Gurbacs from VanEck does not sweat

Meanwhile, Gabor Gurbacs is not worried about the impact of the closure on the SEC's decision.

On Saturday, January 19, Gurbacs tweeted playfully a video of physical training at the gym in which he jokingly said that he was himself the "Bitcoin soldier".

In response, the author has kindly treated it on Twitter. He reacted by reaffirming his company's position that she had done everything possible to get SEC approval and left everything on the ground.

Longing rusty furnace dawn … merkle beastmode. (The bitcoin soldier) pic.twitter.com/24Ecp1JGAt

– Gabor Gurbacs (@gaborgurbacs) January 19, 2019

As the NCC report has reported, Gurbacs is confident that the SEC's approval is imminent. "America wants an ETF in bitcoins and we are here to build it," Gurbacs said in December 2018.

We believe that we have met all the obstacles and requirements of the market structure in terms of pricing, conservation, valuation and conservation. We are therefore extremely optimistic.

Nasdaq to launch Bitcoin Futures in the first quarter

Regardless of the SEC's outcome, VanEck plans to launch bitcoin futures in 2019 as part of a partnership with Nasdaq.

The second largest stock exchange in the world, Nasdaq, is working with the Commodity Futures Trading Commission to ensure that it complies with all outstanding regulatory issues.

In December, Gurbacs noted that VanEck "had also traveled a few extra kilometers in collaboration with the CFTC to set new standards for custody and surveillance."

Nasdaq will launch 'Bitcoin Futures 2.0' in early 2019 https://t.co/VSD7ouQaTs

– CCN.com (@CryptoCoinsNews) November 29, 2018

At the same time, Nasdaq's rival ICE (Intercontinental Exchange) – the parent company of the New York Stock Exchange – also intends to unveil a physically installed bitcoin term product in the first quarter. Bakkt, the cryptographic platform built by ICE, plans to launch its bitcoin futures market soon, despite delays. There is a lot going on in the cryptography market this quarter. So stay tuned.

Featured image of Shutterstock