SEC Delays VanEck’s Bitcoin ETF Decision for Another 45 Days
VanEck, the New York-based asset management company, is once again forced to wait for the US Securities and Exchange Commission (SEC) to rule on its latest Bitcoin exchange-traded fund (ETF) application.
Van Eck, who has over $65 billion in assets under management, has submitted his latest spot Bitcoin ETFs application on June 24, the previous deadline for the regulator’s decision expiring on August 27.
If approved, VanEck’s product would trade on the Cboe BZX Exchange.
In an Aug. 24 filing, the SEC said it was extending the ruling on VanEck’s request for another 45 days, until Oct. 11, when the regulator would “approve or disapprove, or initiate a procedure to determine whether to disapprove of the proposed currency rule.”
According to the SEC, “the Commission believes it is appropriate to designate a longer period to take action on the proposed rule change so that it has sufficient time to review the proposed rule change and the issues therein. raised”.
The agency also said it “hasn’t received any comments on the proposed rule change” since its July 13 call for comment.
In November 2021, the SEC denied VanEck’s earlier request citing concerns about “fraud and manipulation” in the Bitcoin spot market.
SEC and the Bitcoin ETF
An ETF is an investment tool that allows investors to buy stocks representing the underlying asset. A Bitcoin ETF would therefore allow investors to gain exposure to Bitcoin without having to purchase the cryptocurrency from an exchange and store it in a crypto wallet.
While gold, real estate and foreign exchange ETFs are very popular among US investors, they have yet to see a bitcoin-based equivalent, despite numerous attempts to launch such a product.
The SEC has repeatedly denied multiple requests for a spot-based Bitcoin ETF. It did, however, approve several Bitcoin futures ETFs last year after the agency’s chairman, Gary Gensler, hinted that the Commission would be inclined to approve such products.
VanEck, along with companies like ProShares and Valkyrie, was among the few companies to launch a Bitcoin futures ETF – the company’s Bitcoin Strategy ETF (XBTF) debuted on the Cboe-owned BATS Global Markets exchange in November 2021.
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