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The SEC Rejected VanEck’s Spot Bitcoin ETF Application Citing Investor Protection

Summary:
The United States Securities and Exchange Commission has rejected VanEck’s proposal for a spot Bitcoin ETF. This comes after several delays by the agency. The global investment manager VanEck has been among the most active companies when it comes down to filing with the SEC to launch a Bitcoin ETF. In the past several years, the firm had numerous applications, with some rejected by the agency and others it had to withdraw on its own. However, the landscape in the States changed in October this year when the SEC allowed two futures-based Bitcoin ETFs to go live, one of which was VanEck’s Strategy ETF. As such, many believed that the Commission will be more open-minded towards a spot exchange-traded fund tracking the performance of the primary cryptocurrency. So far, though,

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The United States Securities and Exchange Commission has rejected VanEck’s proposal for a spot Bitcoin ETF. This comes after several delays by the agency.

  • The global investment manager VanEck has been among the most active companies when it comes down to filing with the SEC to launch a Bitcoin ETF.
  • In the past several years, the firm had numerous applications, with some rejected by the agency and others it had to withdraw on its own.
  • However, the landscape in the States changed in October this year when the SEC allowed two futures-based Bitcoin ETFs to go live, one of which was VanEck’s Strategy ETF.
  • As such, many believed that the Commission will be more open-minded towards a spot exchange-traded fund tracking the performance of the primary cryptocurrency.
  • So far, though, this hasn’t been the case. The most recent SEC filing from Friday rejected VanEck’s spot Bitcoin ETF application as it prohibited the CBOE BZX Exchange from listing its shares.
  • “This order disapproves the proposed rule change. The Commission concludes that BZX has not met its burden under the Exchange Act.” – reads the document.

  • Additionally, the SEC added that BZX and VanEck were unable to address previous hurdles, which were “designed to prevent fraudulent and manipulative acts and practices” and “to protect investors and the public interest.”
  • The Commission’s Chair – Gary Gensler – asserted recently that a futures-backed ETF will be safer for investors, which is why only such funds have been approved in the States.
  • The SEC’s rejection comes after the agency delayed making the decision on VanEck’s BTC ETF twice this year.
  • Somewhat expectedly, VanEck’s Director of Digital Assets was disappointed by the Commission’s decision.

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