Mark Cuban, owner of the NBA team Dallas Mavericks, has said “no” to investing in bitcoin-based exchange-traded funds (ETFs), one of which could begin trading in the United States next week. The Shark Tank star sees no reason to invest in a bitcoin ETF, pointing out that he can buy the cryptocurrency directly.
Mark Cuban Opposes a Bitcoin ETF
Mark Cuban, Shark Tank star and owner of the NBA team Dallas Mavericks, has shared his thoughts on the much-hyped bitcoin exchange-traded funds (ETFs).While the Securities and Exchange Commission (SEC) has yet to approve a bitcoin ETF, the country’s first bitcoin futures ETF could begin trading as soon as next week.
Cuban, on the other hand, has no plans to invest in a bitcoin ETF or a bitcoin futures ETF when they become available on an American exchange. In response to a question about whether he plans to invest in any bitcoin-based ETFs in an interview with CNBC published Friday, the shark tank star replied bluntly: “No.”
No. I have the ability to purchase BTC directly.
Cuban has been involved in the cryptocurrency space for quite some time. Because of its algorithmic scarcity, he previously referred to bitcoin as “better gold than gold,” viewing the cryptocurrency as a store of value rather than a currency. In April, he stated:
That is why I have bitcoin and have never sold it.
The Dallas Mavericks owner has previously stated that he has invested in ether (ETH), dogecoin (DOGE), non-fungible tokens (NFTs), and a number of blockchain companies. Dogecoin, according to him and Tesla CEO Elon Musk, is the “strongest” cryptocurrency for payments.
In terms of cryptocurrency regulation, Cuban believes the rules are ambiguous and has publicly chastised the SEC for taking an enforcement-focused approach to regulating the crypto industry. “The issue isn’t that people are looking for grey areas; it’s that there are rarely clearly defined rules.” “Litigation traps everyone who can’t afford a lawyer, accountant, or advisor,” he believes.
While futures-based bitcoin ETFs give investors some exposure to the cryptocurrency market without actually owning any coins, Todd Rosenbluth, CFRA’s director of ETF and mutual fund research, explained:
The price of the ETF will not be the same as the price of bitcoin. As a result, it is probably better for short-term exposure than for long-term buy and hold investing.