SEC Delays VanEck’s Bitcoin ETF For Another 45 DaysAugust 27, 2022 4:57 pm
It looks like the SEC has once again either delayed or denied another request for a Bitcoin ETF to be approved on the exchange market.
Most recently, VanEck’s latest application for a Bitcoin ETF which was submitted on June 24 was expecting a response by the deadline of August 27.
Unsurprisingly, the SEC has now delayed that response date by another 45 days which makes the new date October 11 where the regulator will either approve or deny it.
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VanEck currently has around $65 billion in assets under management and is one of the well-known asset management firms in New York.
SEC Delays Decision on VanEck’s Latest Bitcoin ETF Application#VanEck would have to wait for nearly two months to see if the #SEC would reject or approve its newest #BitcoinETF application. pic.twitter.com/j63TkZr9rC
— Cryptocurrency Inside (@Crypto_Inside_) August 26, 2022
If approved, VanEck’s product would trade on the Cboe BZX Exchange.
In an August 24 filing, the SEC said it was extending the decision on VanEck’s application by another 45-day period, until October 11, when the regulator would “either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change.”
According to the SEC, “the Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.”
The agency also said that it “has received no comments on the proposed rule change” since calling for feedback on July 13.
This is apparently not the first time that the SEC has rejected VanEck’s application as the firm has submitted previous applications in the past.
In fact, so far the SEC has yet to approve a spot Bitcoin ETF on the market and has so far rejected all applications to date.
The approval of a spot Bitcoin ETF is seen as critical for the growth of the crypto market as it will allow for capital from more traditional markets to enter the industry.
It would also provide a less risky alternative to gain access to crypto due to the diversified risk portfolios of a typical ETF.
The SEC has delayed the decision on VanEck's spot bitcoin ETF by 45 days.
The SEC has cited market manipulation and a lack of investor protection as reasons behind rejecting spot ETF applications.https://t.co/Fsd16AxcXS
— Michael Branch (@Michael63140627) August 26, 2022
An ETF is an investment tool that allows investors to buy shares representing the underlying asset. A Bitcoin ETF would therefore allow investors to gain exposure to Bitcoin without the hassle of buying the cryptocurrency from an exchange and storing it in a crypto wallet.
While Gold, real estate, and foreign currency ETFs are quite popular among U.S. investors, they are yet to see a Bitcoin-based equivalent—despite numerous attempts to launch such a product.
The SEC has repeatedly turned away multiple applications for a spot-based Bitcoin ETF. It has, however, approved several Bitcoin futures ETFs last year after the agency’s chair Gary Gensler hinted that the Commission would be inclined to approve such products.
VanEck, along with the likes of ProShares and Valkyrie, was among those few companies to launch a Bitcoin futures ETF—the firm’s Bitcoin Strategy ETF (XBTF) debuted on the Cboe-owned BATS Global Markets exchange in November 2021.
— Ocean GamesGuild (@ocean_guild) August 26, 2022
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