Fund Management Giant VanEck Says Bitcoin Is ''Close To Perfect Trade''

Fund Management Giant VanEck Says Bitcoin Is ”Close To Perfect Trade”

Updated: 01 November 2023

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Fund management giant VanEck says conditions are becoming extremely favourable for Bitcoin and the cryptocurrency industry as 2024 draws near.

CEO Jan van Eck, speaking in an interview on the Empire podcast, said that Bitcoin has been established as the main alternative to gold as a store of value, that the Federal Reserve is moving toward a lower rates policy, and that the Bitcoin halving is expected in April.

“You’ve got an almost close to perfect setup as a trade,” Van Eck said.

A must-watch episode w/ CEO @JanvanEck3 and @mleinweber2 from @MarketVector

📺https://t.co/Fbc3beOmvN https://t.co/eGUwuqO3md

— VanEck (@vaneck_us) October 31, 2023

Van Eck, who’s firm manages about $76 billion in assets, added that markets never seems to price in the halving, which thus always leads to a bull market.

“Why don’t people anticipate this,” he asked. “There’s no accounting for the crowd.”

A must-watch episode w/ CEO @JanvanEck3 and @mleinweber2 from @MarketVector

📺https://t.co/Fbc3beOmvN https://t.co/eGUwuqO3md

— VanEck (@vaneck_us) October 31, 2023

Van Eck believes that politically motivated rate cuts ahead of an election may coincide with the bitcoin halving, as well as potential spot bitcoin ETF launches, making for a “very exciting spring” for crypto investors.

He states that the Federal Reserve is nearing the end of its tightening cycle, and if one is cynical about cuts coming before the election next year, they would want at least six months for lower rates to kick in.

“We’re near the end of this Fed cycle of tightening,” he says. “We’re certainly closer to the end than the beginning.”

Van Eck also sees movement at the US Securities and Exchange Commission (SEC) regarding potential spot bitcoin ETF approvals, where there was no movement until a month ago.

He points to the SEC’s recent approval of Ether futures ETFs as a potential model for spot bitcoin ETF applications.

“The SEC said, ‘Listen, we don’t want to give anyone an issue or an unfair advantage,’” he said.

Van Eck added that during the process of approving ether futures ETFs, the regulator said to the applicants, “We’re going to try to get you all to market on the same day.”

“And they did. … I would imagine a similar thing is in their mind for spot bitcoin ETFs,” he says.

Approval of Bitcoin ETFs is More Symbolic Than Anything Else

According to the executive, the approval of spot bitcoin ETFs is more symbolic than anything else, adding, “It’s important because everyone thinks it’s important.”

He says that not only because everyone around the globe have “their eye on the SEC on this issue, but also that it is “going to be a great product as well” at a practical level.

Spot ETF products hold an advantage in that they are super tax efficient for Americans when compared to futures-based products, he said.

“If you look at the spot bitcoin products that trade in Canada, Brazil and Europe, they trade at really tight spreads,” he added.

Van Eck is not the only prominent personality in the TradFi industry to speak positively about Bitcoin as a store of value.

Billionaire hedge fund legend Stanley Druckenmiller recently compared Bitcoin to gold as a store of value. He acknowledged its appeal to the younger generation in an Oct. 30 interview with fellow hedge fund great Paul Tudor Jones.

The 70-year-old believes Bitcoin has established itself as a ”brand” over the past 17 years and said that while he doesn’t own any BTC, he should.

Stanley Druckenmiller is one of the most successful hedge fund managers on Wall Street and is worth $6,200,000,000.

He says, “Young people look at #bitcoin as a store of value. It’s a brand. I like it. I dont own any, but I should”pic.twitter.com/DXjrnvE1Qc

— Documenting ₿itcoin 📄 (@DocumentingBTC) October 30, 2023

Such bullish statements coupled with the optimism of a Bitcoin ETF being approved by the SEC in the near future could be responsible for a sustained BTC price rally in November.

Bitcoin was trading at $34,500 as of 5:30 a.m. EST, after rising 0.34% on the day.