SEC rejects VanEck’s spot BTC ETF application
SEC rejects VanEck’s spot BTC ETF application
The US SEC on 10 March rejected investment manager VanEck's application to create an exchange-traded bitcoin spot product (ETP).
The SEC claims that no exchange has yet proven its fund's resilience to fraud.
The United States Securities and Exchange Commission (U.S. SEC) yesterday rejected investment manager VanEck's application to create an exchange-traded bitcoin spot product (ETP), Reuters reports.
The SEC essentially rejected an amendment that would have allowed VanEck to create the bitcoin trust.
Commissioners Mark Uyeda and Hester Peirce immediately issued a statement criticising the commission's decision not to approve the listing and trading of the VanEck' product.
According to SEC, VanEck does not have a comprehensive joint supervisory arrangement with a regulated market of significant size in relation to Bitcoin Spot, as there is no underlying regulated market.
According to the commissioners, the SEC had not previously required a link between the spot and futures markets for other commodity-based ETPs.
it is also clear that the commission is using a uniquely burdensome definition of 'significant' in its analyses of bitcoin spot ETPs," the letter said. The SEC is legally required to declare changes to its policy on approving commodity ETPs, they added.
VanEck has a financial product linked to bitcoin futures. In 2017, VanEck began seeking approval for the product. For months, the SEC delayed a decision on the company's current and third application for a spot ETP.
The SEC is asking the exchange to prove the fund's resilience. However, this is not the first time the SEC has rejected proposals for a bitcoin spot ETP.
Last month, when the Cboe BZX Exchange applied to the SEC to list the Wise Origin Bitcoin Trust, the application was rejected. The regulator then issued a letter outlining its reasons for rejecting the application.
The exchange had not met its responsibility to demonstrate that the fund was designed to prevent fraudulent and manipulative acts and to protect investors and the public interest, the letter said.
There was no data or analysis to support the claim that arbitrage between Bitcoin platforms helps to align global Bitcoin prices, prevent manipulation and eliminate cross-market price disparities.
The SEC claims that no exchange has yet proven its fund's resilience to fraud.
The United States Securities and Exchange Commission (U.S. SEC) yesterday rejected investment manager VanEck's application to create an exchange-traded bitcoin spot product (ETP), Reuters reports.
The SEC essentially rejected an amendment that would have allowed VanEck to create the bitcoin trust.
Commissioners Mark Uyeda and Hester Peirce immediately issued a statement criticising the commission's decision not to approve the listing and trading of the VanEck' product.
According to SEC, VanEck does not have a comprehensive joint supervisory arrangement with a regulated market of significant size in relation to Bitcoin Spot, as there is no underlying regulated market.
According to the commissioners, the SEC had not previously required a link between the spot and futures markets for other commodity-based ETPs.
it is also clear that the commission is using a uniquely burdensome definition of 'significant' in its analyses of bitcoin spot ETPs," the letter said. The SEC is legally required to declare changes to its policy on approving commodity ETPs, they added.
VanEck has a financial product linked to bitcoin futures. In 2017, VanEck began seeking approval for the product. For months, the SEC delayed a decision on the company's current and third application for a spot ETP.
The SEC is asking the exchange to prove the fund's resilience. However, this is not the first time the SEC has rejected proposals for a bitcoin spot ETP.
Last month, when the Cboe BZX Exchange applied to the SEC to list the Wise Origin Bitcoin Trust, the application was rejected. The regulator then issued a letter outlining its reasons for rejecting the application.
The exchange had not met its responsibility to demonstrate that the fund was designed to prevent fraudulent and manipulative acts and to protect investors and the public interest, the letter said.
There was no data or analysis to support the claim that arbitrage between Bitcoin platforms helps to align global Bitcoin prices, prevent manipulation and eliminate cross-market price disparities.
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