The SEC has rejected the VanEck Bitcoin ETF, a move that comes as no surprise to many in light of recent events. We break down all the details and show what this means for crypto going forward.
The SEC rejected a proposed bitcoin-based exchange traded fund on Thursday, with the regulator saying it is concerned that investors might not understand the risks. ETFs stand for “exchange-traded funds” and they are one of the most heavily used investment vehicles in modern markets. They’re typically designed to be easy-to promote growth by giving people access to different types of assets from around the world, without having to worry about buying them individually or setting up a brokerage account at each individual company’s website.The “bitcoin etf decision date” is the date that the Securities and Exchange Commission (SEC) made a decision on whether or not to approve the VanEck Bitcoin ETF. The SEC rejected this application for an ETF, citing concerns about market manipulation and investor protection.
The Securities and Exchange Commission (SEC) of the United States denied VanEck’s Bitcoin spot ETF proposal for the second time on November 12th, citing a variety of factors, including the need to safeguard investors from the volatility nature of the flagship digital currency.
VanEck is once again rejected by the SEC.
After approving a number of Bitcoin futures ETFs last month, crypto fans had anticipated that the top financial regulator would eventually accept VanEck’s spot application.
However, their spirits were dashed when the SEC said that it would not approve an ETF that gives direct exposure to BTC owing to its volatile nature, as well as the fact that the ETF’s ability to prevent fraudulent trading and safeguard investors is unknown.
“The proposed rule modification is rejected by this order. The Commission concludes that BZX has failed to meet its burden of proof under the Exchange Act and the Commission’s Rules of Practice to show that its proposal complies with the requirements of Exchange Act Section 6(b)(5), in particular the requirement that national securities exchange rules be “designed to prevent fraudulent and manipulative acts and practices” and “to protect investors and the public interest,” according to the Friday notice.
The cryptocurrency world has reacted to the SEC’s latest denial.
When word of the SEC’s newest denial hit the wires, members of the crypto community were eager to express their discontent, with many asking why the agency would allow a Bitcoin futures ETF but reject a Bitcoin spot ETF.
A Bitcoin futures ETF differs from a Bitcoin spot ETF in that the latter gives direct investment exposure to the digital asset, whilst the former enables investors to get indirect investment exposure to the asset by purchasing equities via brokerage accounts.
The Blockchain Association expressed its disappointment with the SEC’s decision, writing that it was “disappointed” by the Gary Gensler-led agency’s decision.
We are saddened by the SEC’s decision to deny our physical bitcoin ETF clearance today. We think that regulated funds should be allowed to provide #BTC exposure to investors, and that a non-futures ETF structure is the best option. @gaborgurbacs @tyler
November 12, 2021 — Jan van Eck (@JanvanEck3)
Jan Van Eck, the company’s CEO, also expressed his dissatisfaction with the latest decision through Twitter. “Investors should be able to obtain exposure to #BTC via a regulated fund,” he says, adding that “a non-futures ETF structure is the best solution.”
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The “number of developers on cardano” is the reason that the SEC rejected the much anticipated VanEck Bitcoin spot ETF. The SEC cited concerns about whether or not Cardano will be able to attract enough developers in order for it to be viable.
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