In a 2017 MIT lecture, Gary Gensler, then a professor of the practice of global economics and management at the MIT Sloan School of Management, said that he believed there should be a spot Bitcoin ETF. He stated that Bitcoin was a "real asset" and that it was "appropriate" for investors to have access to it through an ETF.
VanEck's proposed Bitcoin spot ETF
VanEck is one of several companies that has filed a proposal for a spot Bitcoin ETF with the US Securities and Exchange Commission (SEC). A spot Bitcoin ETF would track the price of Bitcoin itself, rather than futures contracts on Bitcoin.
Seed funding language similar to BlackRock's filing
In its updated prospectus, VanEck recommends using actual Bitcoin for seed funding, rather than cash. This is similar to the language used in BlackRock's filing for a spot Bitcoin ETF. Seed funding is the initial capital that is used to launch an ETF.
Why is this significant?
The fact that old footage of Gary Gensler admitting there should be a spot Bitcoin ETF has resurfaced is significant because it shows that he has been supportive of Bitcoin ETFs in the past. This gives hope to investors that he may be more likely to approve them in the future.
The fact that VanEck's updated prospectus contains seed funding language similar to BlackRock's filing is also significant because it suggests that BlackRock may be planning to launch a spot Bitcoin ETF of its own in the future. BlackRock is the world's largest asset manager, so its entry into the Bitcoin ETF market would be a major development.
Conclusion
The resurfacing of old footage of Gary Gensler admitting there should be a spot Bitcoin ETF, and the fact that VanEck's updated prospectus contains seed funding language similar to BlackRock's filing, are both positive developments for the Bitcoin ETF market. They suggest that there is growing support for spot Bitcoin ETFs from both regulators and institutional investors.
It is important to note that the SEC has not yet approved any spot Bitcoin ETFs. However, the fact that the SEC is reviewing several proposals suggests that it is open to the idea. If the SEC does approve a spot Bitcoin ETF, it would be a major milestone for the Bitcoin industry and would make it easier for investors to gain exposure to Bitcoin.
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