- United States SEC rejects VanEck’s ETF
- The SEC says approving the ETF will open traders to frauds
- Industry experts show concerns over the verdict
With the wide acceptance of Bitcoin and other digital assets, they have pushed Bitcoin ETFs across the world. Although the United States is still skeptical about exchange-traded funds, other countries are opening up to this new financial instrument. In a recent update by the United States SEC, the spot Bitcoin ETF owned by VanEck has not been approved. This update is coming months after the firm first applied to list its ETF.
United States SEC war against fraud
In a filing released today, the United States SEC has disapproved a rule that will help Cboe BZX exchange trade the VanEck owned Bitcoin ETF. In its filing, the regulatory body mentioned that any rule that would push for the Bitcoin ETF’s approval would not help prevent traders from fraudulent activities. It also said that the rule should also open up space to protect investors’ interests and the public’s.
The regulator opined that the BZX exchange is making little effort to fulfill its part in the Exchange Act and the rule of practice provided by the body. It also mentioned that the rule of practice should be in line and fulfill the conditions spelled out in the Exchange Act section.
Industry experts show concern over the verdict
Before this announcement, the United States SEC had about 240 days to reach a verdict regarding the approval or rejection of the offering. The offering was published in the Federal Register, which meant that the ruling would be delivered by November 18. Before then, the body was granted the opportunity to shift the date from April 28 and September 8.
Before a verdict was reached, experts in the crypto sector had predicted that the United States SEC might not approve the listing. Owing to their previous records of rejection, industry expert Eric Balchunas mentioned that the odds of the VanEck owned ETF getting approval from the SEC was placed at 1%. According to Balchunas, the body sees many inconsistencies in the regulated CME spot market compared to the futures market. The rejection was felt on the price of Bitcoin as the digital asset nosedived to trade at $62,300. Presently, Bitcoin is trading at $63,887, losing 1.52% in the last 24 hours.