US SEC Rejects VanEck Spot Bitcoin Exchange-Traded Fund

The US Securities and Exchange Commission has announced that it has rejected the proposal of the VanEck Bitcoin ETF.

US SEC Rejects Another Spot Bitcoin ETF Proposal

The US Securities and Exchange Commission (SEC) announced earlier today that it had rejected a bitcoin exchange-traded fund run by VanEck. The ETF tried to track the spot movement of Bitcoin’s price.

This latest development comes as no surprise, as the SEC has made it clear on numerous occasions that it is happy to approve a spot Bitcoin ETF at the moment. The regulatory body has always maintained that it is concerned about possible manipulation in the Bitcoin market, and that would affect investors.

The VanEck Bitcoin ETF proposal was submitted in March by the Cboe BZX Exchange. CBOE wanted to mention the VanEck Bitcoin ETF and tried to become the first fund to track Bitcoin’s spot price in the United States.

While the US continues to reject Bitcoin ETF proposals, Canada is already at the forefront of the market as it has approved some Bitcoin and Ether ETFs. US institutional investors like Ark Invest gain exposure to spot Bitcoin ETFs in Canada.

The rejection comes barely a month after the SEC Approves First Futures-Based Bitcoin ETFs: the ProShares Bitcoin Strategy ETF and the Valkyrie Bitcoin Strategy ETF. The SEC said it prefers ETFs that track Bitcoin futures rather than Bitcoin’s spot price.

BITO and BTF dip after SEC rejection

The ProShares Bitcoin Strategy ETF (BITO) and Valkyrie Bitcoin Strategy ETF (BTF) have been trading in the red zone since the SEC rejected the VanEck Bitcoin ETF proposal. BITO and BTF are currently the two existing Bitcoin-related ETFs in the United States.

BITO ETF Chart. Source: FXEMPIRE

At the time of going to press, BTF is down 1.34% and is trading at $25.32 a share, while BITO is trading at $45.15, down 1.23% in recent hours. ETFs could fall lower next week as the market adjusts to SEC rejection news.

This article was originally posted on FX Empire

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