VanEck CEO Jan van Eck talks SEC approving bitcoin spot ETFs

Jan van Eck, VanEck CEO, joins ‘Closing Bell Overtime’ with reaction to the SEC approving bitcoin spot ETFs.

DECISIONS THE SEC IS MAKING. AS WE CONTINUE TO DO THAT, WE ARE JOINED BY THE CEO OF THE VAN >> ETF. SO WHATEVER WE ARE CALLING THEM NOW, YOU’VE GOT A BUNCH OF US WITH A HEAD FAKE YESTERDAY.

WHAT IS YOUR SENSE OF WHAT IS COMING WITH THE SEC RULES AROUND BUT GOING ETF’S? >> I CAN BREAK NEWS BECAUSE YOUR PRODUCERS WERE ASKED IN FOR A THUMBS UP. THE SEC IS GOING TO DECLARE OUR PERSPECTIVE EFFECTIVE WHICH MEANS WE CAN START TRADING

TOMORROW. >> SO HOW WILL THIS SHIFT? THERE HAS BEEN A LOT OF ANTICIPATION. THE PRICES OF BITCOIN RAN UP AN EXPECTATION. UNCLEAR WHAT SORT OF VOLUNTARY — VOLATILITY WE WILL SEE. >> IT UNDERLIES THE HOUSING MARKET TRADING.

FIRST OF ALL, ABOUT 30 BILLION OF THE AND TRADES EVERY DAY. HALF ON POINT BASE AND THE OTHER HALF OVER-THE-COUNTER. THERE IS A LOT OF LIQUIDITY IN THE UNDERLYING ASSET OF BITCOIN. COMPARE THAT TO THE BIGGEST THAT ONE FUND RIGHT NOW WHICH

IS ABOUT 26 BILLION. THERE IS A LOT OF LIQUIDITY. TRADES UNDER $200 MILLION PER DAY. IF THAT KIND OF EXCHANGE VOLUME SHIFT OVER TO THE ETF’S, THINGS SHOULD BE SMOOTH TOMORROW WOULD BE MY EXPECTATION. >> SOUNDS LIKE YOU GOT APPROVAL. CONGRATULATIONS.

THIS HAS BEEN YEARS IN THE MAKING. YOU FIRST FILED IN 2017. WHO IS GOING TO BUY IT? ARE YOU EXPECTING A LOT OF INSTITUTIONAL INVESTOR ADOPTION? NOW THAT WE HAVE APPROVAL AND MULTIPLE ETF’S COMING TO MARKET, IS THE ROOM FOR EVERYONE?

>> FIRST QUESTION, I THINK A LOT OF PEOPLE WILL BE EXPLORING BIT POINT FOR THE FIRST TIME. THERE HAVE OBVIOUSLY BEEN A LOT OF RETAIL INVESTORS INVOLVED BUT A LOT OF FIDUCIARIES, FINANCIAL ADVISORS. FRANKLY THE BANKS HAVE BEEN TOLD BY THE REGULATORS DO NOT

TOUCH CRYPTO. EVEN TODAY, AS YOU KNOW, ETF’S STRUCTURED WITH REDEMPTIONS BECAUSE THE REGULATORS WANTED THE BANKS TO STAY AWAY. A LOT OF MAJOR AND THE TUITIONS. GOING TO BE LOOKING AT GOING FOR THE FIRST TIME. SOMETHING TO SAFELY BUY IN

CUSTODY FOR THEIR CLIENTS. WILL IT BE A DAY ONE EVENT? I DON’T THINK SO. PEOPLE TRY TO FIGURE OUT HOW THIS FITS INTO THEIR PORTFOLIOS. WHAT WE SAY IS LOOK, IT IS PART OF YOUR ASSET ALLOCATION. A VALUE AGAINST INFLATION AND

THINGS LIKE THAT. YOU HAVE TO SIZE IT APPROPRIATELY GIVEN THE VOLATILITY. >> HOW SHOULD SOMEBODY NEWER TO THIS ASSET CLASS BE THINKING ABOUT IT? ESPECIALLY WITH THINGS LIKE PUBLICLY LISTED MINORS AND DEBATES OF CENTRALIZATION OF MINING AND OTHER FEES AND

THINGS THAT ARE ASSOCIATED WITH THAT. >> I AM VERY EXCITED THAT IT WAS A BIG JUMP UP AND MAYBE BE A 13-YEAR-OLD TOMORROW. THERE’S BEEN A LOT OF THREATS. IT WAS ILLEGAL TO OWN GOLD BULLION. THERE WILL CONTINUE TO BE THREATS.

THIS HAS REALLY SET IT FIRMLY IN THE EMISPHERE IF YOU WILL A FINANCIAL ASSET IN THE UNITED STATES. WHAT WE SAY IS BY A LITTLE. DOLLAR COST AVERAGE. WITH THE VOLATILITY OF THIS ASSET, YOU DON’T WANT TO TRY TO

TIME IT OR DO IT ALL AT ONCE. DOLLAR COST AVERAGING THROUGH THE HISTORY HAS ALWAYS PROVEN TO BE A PROFITABLE STRATEGY. THAT’S WHAT WE ARE REALLY TELLING PEOPLE. DON’T BE SHY ABOUT BUYING A TEENY BIT TO EXPERIENCE IT. BE CAREFUL TO SPREAD YOUR

INVESTMENT OUT OVER TIME. THE FRAMING — JUST TO FINISH QUICKLY, WE HAVE