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The US Securities and Exchange Commission (SEC) has thrown out a spot bitcoin ETF proposal by global investment manager Vaneck that seeks to track the token’s price movement. A final verdict was due in September but the agency decided to postpone it.
The SEC believes that Vaneck’s proposal which was submitted in March by Cboe BZX Exchange does not meet the requirements under the “Exchange Act and Commission’s Rules of Practice to demonstrate that its proposal is consistent,” meaning that SEC cannot determine whether the exchange can “protect investors and public interest.”
“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.”SEC’s official statement read.
There has been a flurry of proposals since SEC’s Chairman Gary Gensler revealed he would welcome more bitcoin ETFs, as he openly declared his preference for bitcoin futures ETF over spot bitcoin ETF.
ProShares Bitcoin Strategy ETF (BITO) and the Valkyrie Bitcoin Strategy ETF (BTF) began trading bitcoin futures ETF last month after getting SEC’s approval.
VanEck got the same approval but the investment manager is yet to commence trading.