The US Securities and Exchange Commission (SEC) refused to formally approve VanEck’s Spot Bitcoin exchange traded funds a few months after the company submitted an application.

According to a statement on Friday, the Securities and Exchange Commission (SEC) has rejected a proposed rule change for the Cboe BZX Exchange to trade VanEck’s Bitcoin Trust (BTC) Trust shares. Specifically, the SEC said that any rule change in favor of ETF approval would not be “aimed at preventing fraud and manipulation in business and practice” or “to protect investors and the public interest.”

“The Commission concluded that BZX failed to meet its burden under the Stock Exchange Act and the Commission’s recommendation to demonstrate that the proposal was in line with the requirements of the Stock Exchange Act,” the SEC said, adding:

“Any exchange that lists derivative securities must enter into a sharing monitoring agreement with the markets that trade in the underlying assets of the listed exchange in order to obtain the information it needs to detect, investigate and prevent fraud. and market manipulation, and breaches of stock exchange rules and securities laws and regulations. current federal finances.
The regulator had a maximum of 240 days to approve or reject a proposal after it was posted to the Federal Register on March 19, giving the Securities and Exchange Commission a deadline of November 14 to make a decision following the April 28 renewals. and Sept. 8, an industry expert. Bloomberg. Eric Balchonas, ETF chief analyst, said it was unlikely the US Securities and Exchange Commission would approve VanEck, given his experience rejecting offers from investment firms related to cryptocurrencies – a prediction that eventually came true.

“[The Securities and Exchange Commission] addresses the CME inconsistency by not assessing regulated signatures by immediate rejection and then approving future ETFs,” Balchonas said. “That’s a good argument, but the SEC does not care. Does not have it. Basic logic and reason are more important than technical legitimacy.”

While a decline may be a blow to many investors, the Securities and Exchange Commission has already approved ETFs related to bitcoin futures. In October, Valkyries Shares and ProShares’ BTC Strategy ETFs were launched on US stock exchanges. Since then, ProShares ETFs have climbed to the top 2% of ETFs by total trading volume – shares worth approximately $ 400 million traded on November 10th.

RELATED: BlackRock Report says There Are No “Current Plans” to Launch Crypto-ETFs as a Deadline for VanEck Bidding Methods

The impact on the bitcoin price caused the cryptocurrency to briefly fall to $ 62,300 and then back to over $ 63,000. The price has fallen 9.7% since Bitcoin reached a new record of $ 69,000 on November 10th.

Source: CoinTelegraph

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