The US SEC rejects VanEck’s Spot Bitcoin Exchange-Traded Fund proposal – here’s why

The US Securities and Exchange Commission (SEC) has rejected a proposal to launch a spot Bitcoin exchange-traded fund (ETF) that will actively track the price of BTC.

According to the agency, the proposal was from investment firm VanEck denied due to concerns about manipulation in the crypto markets.

The Commission says the proposal should be designed to prevent fraudulent and manipulative actions and practices, and VanEck did not adequately prove that it can protect investors.

“It is essential for an exchange listing a derivative securities product to enter into a monitoring sharing agreement with markets that trade in the underlying assets so that the listing exchange has the opportunity to obtain information necessary to detect, investigate and deter fraud and market manipulation, as well as violations of stock exchange rules and applicable federal securities laws and regulations. “

The rejection comes three weeks after the SEC for the first time allowed the launch of two Bitcoin futures ETFs.

The two BTC ETFs helped trigger a major rally in the crypto markets, with Bitcoin reached a record high of $ 69,044 on November 10th.

The price of the best cryptocurrency has since returned to $ 64,225 at the time of writing.

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Featured image: Shutterstock / GrandeDuc

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