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- VanEck is still waiting for the decision from the SEC.
- SEC publicised that it will extend the decision for the next 45 days
VanEck, the New York-based asset management company is waiting until to hear from the U.S Securities and Exchange Commission (SEC) to decide on its most recent Bitcoin exchange traded fund (ETF) request.
Van Eck, which has more than $65 billion of funds under administration, has submitted its most recent spot Bitcoin ETF application on June 24 with the earlier deadline for the decision of the regulator expiring on the 27th of August.
If the product is approved, VanEck’s will be traded via the Cboe BZX Exchange.
On the 24th of August, the SEC announced that it would extend the decision on VanEck’s request for another 45 days, through October 11, after which the regulator will “either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change.”
As per 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 added they “has received no comments on the proposed rule change” since it asked for feedback in July 13.
SEC denied VanEck’s application
In November 2021 The SEC denied VanEck’s earlier application, due to concerns about “fraud and manipulation” of the Bitcoin spot market.
The ETF can be described as an investment instrument which allows investors to purchase shares that represent the asset they are investing in. An ETF that is a Bitcoin ETF Bitcoin ETF will therefore enable investors to invest in Bitcoin without the hassle of purchasing the cryptocurrency on an exchange and then storing it in an electronic wallet.
While real estate, Gold ETFs that invest in foreign currencies are extremely popular among U.S. investors, they have not yet seen the Bitcoin equivalent, despite numerous attempts to introduce similar products.
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The SEC has repeatedly rejected several applications for a Bitcoin ETF that is based on a spot. However, it has given approval to several Bitcoin forwards ETFs last year , after the chair of the agency Gary Gensler hinted that the Commission may consider approving the products.
VanEck together with other ETFs like ProShares and Valkyrie VanEck was among the few companies to debut an Bitcoin ETF that was a futures ETF. The firm’s Bitcoin Strategy ETF (XBTF) was launched at the Cboe owned BATS Global Markets exchange in November 2021.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
