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SEC Rejects VanEck’s Spot Bitcoin ETF Proposal
The decision did not come as a surprise given SEC chair Gary Gensler’s preference for a bitcoin futures ETF.
By Nelson Wang
Updated Mar 9, 2024, 2:02 a.m. Published Nov 12, 2021, 8:33 p.m.
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The U.S. Securities and Exchange Commission (SEC) rejected investment firm VanEck’s proposal for a spot bitcoin exchange-traded fund (ETF) in a decision released on Friday. The agency had previously delayed its final decision on the proposal in September.
- In its letter, the SEC wrote that “the Commission concludes that [the fund] has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with … the requirement that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices’ and to ‘protect investors and the public interest.’”
- The decision was widely expected as SEC Chair Gary Gensler has indicated his preference for a bitcoin futures ETF over an ETF that holds bitcoin multiple times in the past.
- Two bitcoin futures ETFs, the ProShares Bitcoin Strategy ETF (BITO) and the Valkyrie Bitcoin Strategy ETF (BTF), began trading last month, leading to a significant rally in the price of bitcoin. VanEck has its own bitcoin futures ETF that has received permission from the SEC to launch, but it has not begun trading yet.
- The price of bitcoin briefly dipped less than 1% following the release of the SEC’s decision, but quickly recovered. Bitcoin was trading down about 3.1% over the past 24 hours to $63,182.
Spot Bitcoin ETF Has Been REJECTED: https://t.co/UIaDLpA4zD https://t.co/7IlmEPfHDE
— Eric Balchunas (@EricBalchunas) November 12, 2021
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This is a developing story and will be updated.
UPDATE (Nov. 12, 17:10 UTC): Added BTC price information.
UPDATE (Nov. 12, 17:29 UTC): Added SEC statements in first bullet point.
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