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Cryptocurrency
15 Nov 2021
U.S. Declines VanEck’s Spot Bitcoin ETF Application, Cites Investors’ Protection
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Investors hoping to see a spot Bitcoin ETF are facing disappointment as the United States Securities and Commission SEC has rejected VanEck’s application for launch. The company has built reputation as being one of the most active firms for filing to launch Bitcoin ETF in the U.S.
VanEck has applied through multiple applications with the SEC along with other agencies and has withdrawn a number of applications themselves. The US approved ETF prospects last October and further allowed for futures-based Bitcoin ETFs. VanEck and other companies were hopeful with applications and assumed the SEC would use a lenient approach for approval.
VanEck’s spot Bitcoin ETF was rejected and was prevented from being listed. According to the latest documents, it stated, “This order disapproves the proposed rule change. The Commission that BZX has not met its burden under the Exchange Act.”
The United States Securities and Commission SEC defended their decision to reject saying that VanEck was not yet ready to counter challenges and were at risk of damaging investor interests. SEC Chair Gary Gensler said that the futures-backed ETF must have funds approved in order to be safe for investors. VanEck has displayed disappointment towards the SEC rejection and argues Bitcoin ETF is one of the most safe investment options available to people today.
