SEC rejects VanEck's spot Bitcoin ETF

The US Securities and Exchange Commission (SEC) has rejected the approval of a spot bitcoin ETF from American investment manager VanEck.

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."

The SEC's decision is not surprising. VanEck's disapproval was predicted in advance by many experts.

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.

Earlier in October, the Commission approved the launch of Bitcoin futures ETFs from VanEck and Valkyrie Investments.

Prior to this, the SEC made a similar decision regarding the application from ProShares.

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