SEC rejects VanEck's spot Bitcoin ETF
The US Securities and Exchange Commission (SEC) was to decide by November 14 whether to approve the VanEck Bitcoin ETF, the first exchange-traded fund among spot Bitcoin ETFs. However, as it turned out today, the SEC disapproved of it, citing the fact that the Bitcoin spot market is prone to "fraud and manipulation."
On March 2, the Chicago Board Options Exchange applied to list Bitcoin-ETF on behalf of VanEck. On March 18, the SEC began its consideration, but twice postponed the decision, first in April and then in June. The regulator referred to the need for additional public comments in legal and political aspects.
In September, the SEC once again extended its consideration of VanEck's application to allow "sufficient time to consider the proposed rule change and the issues raised in the comment letters."
#Bitcoin can kicked down the road— ETF Hearsay by Henry Jim (@EtfHearsay) September 8, 2021
VanEck Bitcoin Trust 19b-4 (exchange listing rule change application) approval deadline extended from Sep 15 to Nov 15 by the SEC. https://t.co/EBNaIA8Ghc
Prospectushttps://t.co/nb6jsjADTf#BTC @vaneck_us @cryptocom @CryptoCompare @Bitcoin pic.twitter.com/UO3jXHge2O
The SEC's decision is not surprising. VanEck's disapproval was predicted in advance by many experts.
We give it less than a 1% chance at being approved. Eagles have better chance of winning SuperBowl. https://t.co/ltToPerlwz— Eric Balchunas (@EricBalchunas) November 12, 2021
According to CoinGape, SEC chairman Gary Gensler insisted that a possible "spot" Bitcoin ETF could only exist if there was a clear rule outlining which regulators control various crypto spaces such as crypto exchanges.
Moreover, the decision was also influenced by the recent infrastructure bill, which sets onerous reporting requirements for cryptocurrency.
H.R.3684 Infrastructure bill passed.— James Yochum, CPA (@JTheAccountant) November 6, 2021
Digital Assets are now covered securities.
Reporting will be ushered in for all crypto brokers to report to IRS data on activity from 1/1-12/31/23 of all crypto transfers to other non US brokers (private wallets/offshore)#XRP #SEC #Ripple pic.twitter.com/TGsxZ3XMeV
Earlier in October, the Commission approved the launch of Bitcoin futures ETFs from VanEck and Valkyrie Investments.
3 #Bitcoin Futures ETFs will soon trade in the United States:— Blockworks (@Blockworks_) October 21, 2021
ProShares - Trading
Valkyrie - Trading confirmed for Friday
VanEck - Received SEC approval
Prior to this, the SEC made a similar decision regarding the application from ProShares.