The Securities and Exchange Commission-SEC does not have to decide on the approval of the VanEck Bitcoin ETF until November 14th. In the end, however, the SEC refused, pointing out that the Bitcoin spot market was susceptible to “fraud and manipulation”.
SEC rejects VanEck Bitcoin ETF
According to a filing filed on Friday, the SEC has rejected a proposed rule change to Cboe Exchange BZX that would allow it to list and trade shares in VanEcks Bitcoin (BTC) Trust. Without being strictly worded, the SEC stated that such a rule change would favor the approval of ETFs, harm investors and the public interest, regardless of whether a rule would encourage fraudulent and manipulative practices and practices.
Interestingly, a rejection was expected in the crypto community based on two recent developments:
First, SEC chairman Gary Gensler has always been aware of reservations about his commitment to expanding crypto services, especially “spot” bitcoin ETFs. He claims that this can only happen if there is a clear rule outlining which regulators have control over different crypto rooms, such as crypto exchanges.
Another sign that a rejection is imminent is the law, which was passed along with the most recent infrastructure law and imposes complex reporting requirements for cryptocurrencies.
Unsurprisingly, industry experts like Bloomberg senior ETF analyst Eric Balchunas said the SEC is very unlikely to approve the VanEck fund, a forecast that has finally been made.
Is there a chance a Bitcoin ETF will emerge?
A constant question that will be on everyone’s mind will be whether crypto enthusiasts are fooling themselves that a Bitcoin ETF is about to emerge.
The main problem was jurisdiction, a complicated legal issue at the time. It’s about whether it should be regulated by the SEC or the Commodity Futures Trading Commission (CFTC).
While bitcoin is a commodity and should normally be under the control of the CFTC, a bitcoin ETF is a security that would fall under the jurisdiction of the SEC. As a result, the SEC may be forced to maintain the status quo until there is a clear regulator in place for other parts of the crypto ecosystem such as exchanges.
In short, it will be a long wait to get a Bitcoin ETF, but never rule out the possibility.
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