8 months ago
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VanEck Europe’s CEO has said that the company plans to have half of its income coming from cryptocurrency.
Even in the years leading up to their approval, there was a lot of discussion about the implications of the spot Bitcoin ETF. Besides the excitement about the price impact of the ETF, there was also the possibility of more institutional income flowing into the industry. After all, even crypto sceptics might feel more compelled to invest in digital assets if in the form of a regulator-approved ETF. Barely a few months into the approval, VanEck Europe has revealed its high expectations for crypto income moving forward.
VanEcks’ Big Plans
It is worth noting that VanEck has issued ETFs of its own, notably the Crypto and Blockchain Innovators UCITS ETF. Now, Martijn Rozemuller, the CEO of VanEck Europe, has said that while cryptocurrency currently brings in 10% of its income, this figure is expected to rise to 50% in the future.
“I think that balance will shift. Crypto will become more important … and it will be closer to 50/50,” he said.
While this is ambitious, it is not far-fetched considering that Europe is known for having several pro-crypto countries. The digital euro is currently in development and several countries like the UK are eyeing status as a major crypto hub.
On top of this, there is general excitement regarding the spot Bitcoin ETFs’ impact on Bitcoin price. The token is eyeing a new all-time price high and this will have a ripple effect on the rest of the industry. Crypto investments tend to shoot up during bull runs and this means more income for firms like VanEck.
The company was one of many to be approved for spot Bitcoin ETFs and now, other tokens are being eyed for the same treatment. Ethereum is being backed by several firms to pursue its own spot ETF approval and, of course, this will create more avenues for investment.
Bitcoin Investments Going Mainstream
Besides its Crypto and Blockchain Innovators UCITS ETF, VanEck offers about 50 other ETFs. However, the blockchain ETF has been one of the best-performing, showing that the digital asset space is as high in demand as many ‘traditional’ options.
There has been a lot of doubt cast about the legitimacy of crypto assets but industry wins such as the spot ETF approval help to combat this narrative. Rozemuller has also said in a recent interview that those who invest in VanEck’s crypto ETFs are investing for the long run and not in a bid to make a quick profit.
Should more spot ETFs hit the market and consumers continue to support them, the crypto industry will be more likely to see longevity alongside the traditional asset market. This, in turn, benefits all and not just VanEck.
