After a full research investigation, US regulators rejected the Bitcoin spot ETF application of the fund manager VanEck.
After a long wait, the United States Securities and Exchange Commission (SEC) rejected the application of the Bitcoin spot ETF of the giant fund management firm VanEck on 12 November.
According to the filling available officially on 12 November, ‘Order Disapproving a Proposed Rule Change to List and Trade Shares of the VanEck Bitcoin Trust under BZX Rule 14.11(e)(4)’.
SEC agency confirmed that they will not change any of the existing rules and laws to prevent the ‘fraudulent and manipulative acts and practices” nor “protect investors and the public interest.”
Statement of the SEC agency regarding the rejection of VanEck’s application wants to indicate that the application VanEck was was trying to force the agency to change rules to prevent risks for the investors or trying to explain why spot ETFs approval is more important to prohibit illicit activities.
Agency also concluded that BZX has not met its burden under the Exchange Act and the Commission’ to comply with the guidelines and measures.
SEC agency explained the concerns related to the application and stated
“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.”
It is worth noting, Bloomberg’ ETF analyst Eric Balchunas, passed a statement on the Bitcoin spot ETFs based applications and claimed that the SEC agency may not approve the applications. And here in the present time, we can see that Bloomberg’s analyst was right.
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