SEC Delays Decision on VanEck Bitcoin Spot ETF Application by 45 Days
The United States Securities and Exchange Commission (SEC) has delayed a bitcoin spot ETF application from VanEck, pushing back its decision by 45 days.
The United States Securities and Exchange Commission (SEC) has delayed its decision on the bitcoin spot ETF application by VanEck, according to an August 24 filing. The SEC extends its decision on the application by another 45 days.
Apparently, the SEC wants more time to decide where to approve the spot ETF application, but past decisions do not indicate a favorable outcome is likely. The agency has rejected several spot ETF applications recently, including a VanEck bitcoin spot ETF application last year. VanEck filed this new application for the bitcoin spot ETF in July, about eight months after the rejected application.
The delay on this VanEck Bitcoin Trust will aggravate the firm and market enthusiasts, who have been calling for approval. They argue that this will give the market some legitimacy and actually prevent some of the concerns that the SEC is concerned about.
These concerns include market manipulation and a lack of investor protection, which the SEC has repeatedly highlighted as barriers to a bitcoin spot ETF approval. That hasn’t stopped VanEck, one of the oldest ETF providers, from trying to launch a bitcoin ETF on several occasions.
In this filing, the SEC said,
“The Commission finds that it is appropriate to designate a longer period for taking action on the proposed rule change, so that it has sufficient time to consider the proposed rule change and the issues raised therein.”
The SEC actually has approved futures ETFs, which it seems more than willing to do. VanEck himself has had a bitcoin futures ETF launch in October 2021, joining ProShares as one of the first to release a futures ETF for the asset.
The lack of approval for a bitcoin spot ETF has led to some more serious incidents. Grayscale saw its request for a conversion of the Grayscale Bitcoin Trust into a pot ETF rejected by the SEC. In response, the firm quickly sued the agency, and the lawsuit is expected sometime between Q3 2023 and Q1 2024.
It may be a while before the crypto market sees its first bitcoin spot ETF. Regulation can help make this a reality, but it can also take some time.
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