The SEC Delays VanEck’s Application For The Third Time

The SEC delays VanEck’s application for the third time, as it delayed the judgment for a Bitcoin (BTC) spot exchange-traded fund (ETF).
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The business has long sought approval for what would be America’s first BTC ETF, with its original application to the SEC dating back to 2017 and ultimately being refused.

The SEC denied VanEck’s second application in November 2021, citing the firm’s failure to meet the criteria to safeguard investors as well as avoid fraudulent and manipulative activities and practices.

VanEck persisted with a third application to the SEC for a BTC ETF launch in June 2022, noting several reasons why the SEC should rethink its prior judgments, but the SEC delays VanEck’s application yet again.

VanEck’s main point was that American funds were getting exposure to Bitcoin via BTC spot exchange-traded instruments available in Canada. In February 2021, America’s northern neighbor authorized a spot Bitcoin ETF, becoming one of the first countries in the world to do so.

The deadline for SEC clearance of the most recent file was slated to expire on Aug. 27, forcing the regulator to postpone its judgment by nearly two months.

The SEC has given itself until October 11 to make a decision, and it has stated that it has received no responses on the proposed rule change since asking for public input in July 2022:

“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.”

Since 2017, there has been a movement for an American spot Bitcoin ETF, which would effectively let institutional investors buy shares representing Bitcoin that would be held by VanEck. This allows investors to gain exposure to Bitcoin without physically owning and storing the cryptocurrency. VanEck plans to float its Bitcoin ETF on the Cboe BZX Exchange.

What They Said The Second Time

According to a statement from the time the SEC stated:

“The Commission concludes that BZX 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 requirements of Exchange Act Section,”

The SEC then added:

“It is essential for an exchange listing a derivative securities product to enter into a surveillance-sharing agreement with markets trading the underlying assets for the listing exchange to have the ability to obtain information necessary to detect, investigate, and deter fraud and market manipulation, as well as violations of exchange rules and applicable federal securities laws and rules.”

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