SEC Delays the Decision on VanEck’s Bitcoin ETF Application
The US Securities and Exchange Commission delayed the decision on VanEck Bitcoin Trust’s application for a Bitcoin ETF.
Bitcoin ETF is an exchange-traded fund that will use Bitcoin as an underlying asset. It is going to buy the first cryptocurrency and sell its shares to investors.
While it usually takes 45 days for the SEC to make a decision, in this case it took a whopping 240 days to validate most Bitcoin ETF applications, including VanEck’s application. And, as many sceptics expected, the Commission rejected most applications.
Moreover, the SEC has requested public comment on the VanEck filing.
Stakeholders need to answer a series of questions about the ETF’s vulnerability to “market manipulation” and whether the regulatory ecosystem has changed since 2016.
The Commission is also interested in the opinion on the “transparency” of Bitcoin and on the “size and regulation” of CME Bitcoin futures contracts.
The SEC has repeatedly highlighted its concerns about fraud and manipulation in the BTC markets. In addition, the Commission is concerned about a breach of their obligations to “protect investors”, as the agency does not control the exchanges.