The United States Securities and Exchange Commission (SEC) eventually rejected finance company VanEck’s request to create an exchange-traded spot bitcoin fund (ETF). So far only futures ETFs are authorized, and this will continue at least until next year.
The SEC’s announcement coincided with significant profit-taking in the BTC market after its all-time high, and contributed to the price falling 5% at the weekly close.
Since the approval of the ProShares BTC futures-based ETFs, SEC executives – notably its chairman, Gargy Gensler – have been questioned for their resistance to spot BTC funds; some of those pressures, in fact, came from within the US Congress.
However, the agency decided to stop deferring one of the longest-standing requests on its file and ultimately rejected it. The arguments presented by the SEC reopen the controversy; in their view, such an ETF does not prevent fraudulent practices or protect investors or the public interest.
“It is essential for an exchange that is trading a derivatives product to enter into a surveillance agreement with the markets that trade the underlying assets so that the listed exchange has the ability to obtain the information necessary to detect, investigate and deter fraud and manipulation of the market, as well as violations of exchange rules and applicable federal securities laws and rules,” reads the statement filed by the SEC.
The agency’s announcement came 2 days before its deadline to respond to VanEck’s request. The finance company had submitted all the corresponding documentation in the Federal Register on March 19 of this year, and the SEC requested two extensions to make its decision, in April and September. After 240 days, she was forced to make a decision.