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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.
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
STORY CONTINUES BELOW
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.
Nelson Wang
Nelson edits features and opinion stories and was previously CoinDesk’s U.S. News Editor for the East Coast. He has also been an editor at Unchained and DL News, and prior to working at CoinDesk, he was the technology stocks editor and consumer stocks editor at TheStreet. He has also held editing positions at Yahoo.com and Condé Nast Portfolio’s website, and was the content director for aMedia, an Asian American media company. Nelson grew up on Long Island, New York and went to Harvard College, earning a degree in Social Studies. He holds BTC, ETH and SOL above CoinDesk’s disclosure threshold of $1,000.
