SEC declines VanEck’s spot Bitcoin ETF application, cites investor protection By BTC Peers
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The United States Securities and Exchange Commission has dashed the hopes of investors waiting to see a spot ETF on US soil following the rejection of VanEck’s application to launch the BTC product.
VanEck continues to be one of the top companies for filing applications with the SEC in order to create a Bitcoin ETF. The company has submitted multiple applications, some of which were rejected by SEC. However, the company retracted others.
Two futures-based Bitcoin ETFs were approved by the SEC in October, improving the prospects of ETFs in America. One of the products was VanEck’s Strategy ETF. Many people assumed that the Commission would allow spot-exchange-traded funds to track the performance of primary cryptocurrency. However, this is not the case.
The SEC rejected VanEck’s spot Bitcoin ETF application and restrained CBOE BZX Exchange from listing its shares in its latest filing. The following document was provided:
The proposed rule modification was disapproved by this order. BZX failed to meet the Exchange Act’s requirements, according to the Commission.
The SEC further stated that BZX and VanEck were unable to deal with lingering challenges, which were “designed to prevent fraudulent and manipulative acts and practices” and “to protect investors and the public interest.”
Commenting on the issue, the commission’s chair, Gary Gensler, opined that a futures-backed ETF would be safer for investors, hence only such funds have been approved in the States.
As expected, VanEck’s Director of Digital Assets felt dismayed by the decision.
While allowing Bitcoin futures ETFs for high-roll costs and Bitcoin closed-end funds at double-digit premiums, there is no reason to deny approval of a physical Bitcoin ETF. The best option for investors is undoubtedly the physical Bitcoin ETF.
— Gabor Gurbacs (@gaborgurbacs) November 12, 2021
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