SEC Suspends VanEck Spot Bitcoin ETF Application For 45 Days - Gistlobby - Latest News, Download Music, Read Reviews

SEC Suspends VanEck Spot Bitcoin ETF Application for 45 Days

SEC Suspends VanEck Spot Bitcoin ETF Application for 45 Days

According to a filing dated August 24, the United States Securities and Exchange Commission (SEC) has postponed its hearing on Bitcoin ETF applications. The SEC is delaying by 45 days the investment manager VanEck’s application for a Spot ETF.

If you’re looking to invest in cryptocurrency, you might want to consider a crypto exchange-traded fund (ETF). The Bitcoin Spot ETF is based on the value of BTC, which has not yet been approved by the SEC for trading.

The SEC Requests Additional Time

The regulatory commission is not yet prepared to grant approval for the Bitcoin Spot ETF. It requests additional time before determining its next course of action.

Fund managers may want to start issuing Bitcoin ETF products, but the commission is unlikely to give them the green light based on previous rulings. In addition, the agency has denied numerous spot ETF applications from various companies. In the meantime, the regulator has placed the application on hold and indicated that it will review the request in 45 days.

Meanwhile, the company’s clientele are hoping for confirmation of their desire to have the VanEck Spot ETF implemented. As a result, the VanEck Bitcoin Trust is on the verge of inactivity due to the SEC’s delay.

Spot ETF proponents argue that the market would benefit from having official support if the fund were to be approved.

The SEC is also worried that investors aren’t adequately protected when trading ETFs due to market manipulation and a lack of regulation. As a result, the commission identified this as the primary obstacle to its approval of the Bitcoin Spot ETF.

After Grayscale’s request to change the Grayscale Bitcoin Trust to a Spot ETF was denied, the company decided to take legal action. After being taken to task by the SEC, the company decided to take legal action against the regulatory body. The lawsuit is anticipated to last between the third and first quarters of 2023 and 2024.

The SEC has previously taken a hard line against cryptocurrency firms planning to launch Bitcoin Spot ETFs, so this is not a new policy. Over the course of the past year, it has denied over a dozen applications while approving the Bitcoin Futures ETF. Digital asset managers continue to struggle to persuade the agency.

It will be some time before the first Bitcoin Spot ETF is approved in the cryptocurrency industry. Only regulations can generate motivation, but this will take time.

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