By Curtis Dye
The US Securities and Exchange Commission (SEC) has rejected VanEck’s request for a Bitcoin exchange-traded Funds (ETF), citing concerns about market manipulation prevention. This is the third time the regulator has rejected the plan, which Wisdomtree, ARK Invest, and Valkyrie Investments dismissed.
The relevant document states that the Securities and Exchange Commission (SEC) has decided not to approve a rule amendment submitted by Cboe BZX Exchange to list VanEck’s exchange-traded fund (ETF).
Bitcoin ETF motion rejected
Since the SEC shot down the proposal a little under a year ago, this is the next logical step. The idea was first floated in 2017, and a similar scenario happened with the ETF commodity the following year, in 2021. Moreover, a decision on the exchange commodity has been delayed since the SEC has frequently delayed its judgment on the Bitcoin spot ETF.
The US Securities and Exchange Commission (SEC) has denied a proposed rule modification by the Cboe BZX Exchange to list VanEck’s exchange-traded fund (ETF). The Commission ruled that BZX failed to meet its burden of demonstrating that the proposal is consistent with the requirements of the Exchange Act Section 6(b)(5), which mandates that rules of a national securities exchange must be designed to prevent fraudulent and scheming acts and practices and protect investors and the public interest.
Also read:ETF approval requirements outlined
Moreover, the panel explored the terms and circumstances under which it would revisit the proposal. One of the essential elements that the Commission will evaluate when re-examining the proposal is whether BZX has satisfied its burden of demonstrating that the plan is intended to prevent fraudulent and scheming conduct and practices.
Yet, despite the Commission’s conclusion, several commissioners have disagreed with the regulatory body’s choice. Hester Peirce and Mark Uyeda claim that the SEC’s criteria for Bitcoin spot ETPs are “unusually stringent,” even though the Commission claims to apply the same standards to prior ETP proposals.
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