US regulators ban Vaneck bitcoin ETF that could have been ‘seminal’ for crypto market
The US Securities and Exchange Commission (SEC) has rejected a first-of-its kind exchange-traded fund (ETF) for bitcoin.
The VanEck Bitcoin ETF, which has been under review for more than seven months, could have supercharged the price of the digital currency.
“This order disapproves the proposed rule change. The Commission concludes that BZX has not met its burden under the Exchange Act and the Commission’s Rules of Practice ... in particular, the requirement that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices’ and ‘to protect investors and the public interest’”, the SEC said.
AN ETF could have allowed institutional investors to buy crypto through easily accessible vehicles, but it was not certain to pass.
One senior ETF analyst at Bloomberg estimated the odds of the SEC approving the ETF were “prob like 200-1.”
We haven’t given any formal odds but I’d say odds prob like 200-1, about same chance as Eagles winning SB. https://t.co/5x7QM838IA
— Eric Balchunas (@EricBalchunas) November 7, 2021
It is possible that this rejection could reverse the market’s momentum, but it may not be for long. There are other ETFs under consideration, including one from crypto lender BlockFi and investment management firm Neuberger Berman.
“Optimism is growing in the market,” crypto platform Luno argued in a research note published last week. “A VanEck rejection does not necessarily imply that these other filings will receive the same verdict.”
More follows...
Read More
How bad is bitcoin for the environment really?
Crypto experts discuss bitcoin price predictions
What is Solana? The crypto rising 200-times faster than bitcoin
