VanEck’s spot Bitcoin exchange-traded fund (ETF) saw substantial expansion in the early months of 2024. The VanEck Bitcoin Trust disclosed in its latest submission to the Securities and Exchange Commission (SEC) that the HODL Bitcoin ETF’s net assets grew by $109 million in the first fiscal quarter, ending on March 31, 2024.
Bitcoin ETF’s Gains and Ethereum ETF’s Anticipated Rejection
The filing revealed that the HODL ETF held 8,711 BTC, which were purchased for $515 million and had a market value of $619 million. Additionally, the ETF reported $20 million in liabilities and a net realized gain of $6 million. As of April 30, 2024, the fund had 8.2 million shares outstanding.
On January 10, 2024, the SEC granted approval to VanEck along with 10 other Bitcoin ETFs, setting a historic precedent in the cryptocurrency sector.
In an interview with CNBC on April 9, VanEck CEO Jan van Eck expressed doubts regarding the SEC’s readiness to approve spot Ethereum ETFs, anticipating that his firm’s application might be declined.
VanEck, alongside Cathie Wood’s ARK Invest, were among the first to apply for Ethereum ETFs in the U.S., with decisions expected on May 23 and May 24, respectively.
Advisor Expresses Concerns and Criticism
On March 27, VanEck advisor Gabor Gurbacs voiced strong criticism of current cryptocurrency regulations, arguing they hamper innovation. Gurbacs’s remarks were motivated by ongoing instability within the cryptocurrency sector, which he blamed on insufficient regulatory frameworks, particularly highlighted by the SEC’s delay in possibly approving Ethereum ETF applications.
Gurbacs expressed his dissatisfaction with the regulatory approach to digital assets in developed markets, criticizing it for empowering scammers while stifling genuine innovation and favoring established players at the expense of those creating superior systems. He stated, “I am personally unhappy with how regulators in developed markets managed the first decade of digital asset regulation. They manage to simultaneously enable scammers, hamper actual innovation, and protect incumbents on the expense of those building better systems.”
He also condemned the prioritization of personal or political interests and bureaucratic inefficiencies over national interests and capital formation, particularly in the current global economic climate. “It’s not excusable or tolerable to prioritize personal/political interests and senseless bureaucracy over national interests and capital formation. Not ever, but particularly not in the economic condition where the world is now,” Gurbacs added.
