While the entire community assumed that the US opened the door to an array of Bitcoin ETFs, VanEck’s proposal for an ETF was recently shown the door.
The entire world was stunned following the Securities and Exchange Commission’s [SEC] decision to finally give crypto exchange-traded funds a green signal. Several firms fought long and hard to amass approval from the SEC. However, the financial regulator either delayed or denied the applications. But soon after two Bitcoin ETF applications, from ProShares and Valkyrie, received permission to launch, the community hoped for similar products.
This wasn’t the case as VanEck’s spot Bitcoin ETF proposal got a big no from the SEC. While this decision was time and again delayed by the SEC, it finally decided that the firm wasn’t ready to make its debut just yet.
VanEck’s Bitcoin ETF rejection disappoints CEO
VanEck’s Bitcoin ETF application was delayed back in September and the financial regulator had until 14 November to give its verdict. Days before its deadline, the SEC released a statement dismissing the application and citing concerns about price manipulation.
The safety of the investors happens to be one of the major interests of financial regulators. The VanEck application was rejected as it did not match up to the level of protecting its investors as well as the public interest.
The CEO of the firm, Jan van Eck expressed immense distress over SEC’s decision. Therefore, he took to Twitter and stated,
“We are disappointed in today’s update from the SEC declining approval of our physical bitcoin ETF. We believe that investors should be able to gain #BTC exposure through a regulated fund and that a non-futures ETF structure is the superior approach.”
ProShares made history soon after becoming the first firm to amass the approval of the SEC to roll out a crypto ETF. While this is a futures ETF product, the community was hoping to hoard a spot Bitcoin ETF. This could certainly take a while considering the SEC’s track record.
Additionally, the price of Bitcoin took a massive fall as it dropped to a low of $63K, during the time of writing.