US SEC Rejects the VanEck Spot Bitcoin Exchange-Traded Fund

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The United States Securities and Exchange Commission has announced that it had rejected the VanEck Bitcoin ETF proposal.

US SEC Rejects Another Spot Bitcoin ETF Proposal

The United States Securities and Exchange Commission (SEC) announced earlier today that it had rejected a bitcoin exchange-traded fund run by VanEck. The ETF sought to track the spot movement of Bitcoin’s price.

This latest development doesn’t come as a surprise as the SEC has made it clear on numerous occasions that it fancies approving a spot Bitcoin ETF at the moment. The regulatory agency has always maintained that it is concerned about possible manipulation in the Bitcoin market, and that would affect investors.

The VanEck Bitcoin ETF proposal was filed by the Cboe BZX Exchange in March. CBOE wanted to list the VanEck Bitcoin ETF and sought to become the first fund that was tracking Bitcoin’s spot price in the United States.

While the US continues to reject Bitcoin ETF proposals, Canada is already leading the way in the market as it has approved a few Bitcoin and Ether ETFs. American institutional investors like Ark Invest are gaining exposure to spot Bitcoin ETFs in Canada.

The rejection comes barely a month after the SEC approved the first futures-based bitcoin ETFs: the ProShares Bitcoin Strategy ETF and the Valkyrie Bitcoin Strategy ETF. The SEC said it prefers to approve ETFs that track Bitcoin futures instead of Bitcoin’s spot price.

BITO and BTF Dip After SEC’s Rejection

The ProShares Bitcoin Strategy ETF (BITO) and Valkyrie Bitcoin Strategy ETF (BTF) have been trading in the red zone since the SEC rejected the VanEck Bitcoin ETF proposal. BITO and BTF are currently the two existing Bitcoin-related ETFs in the United States.

BITO ETF chart. Source: FXEMPIRE

At press time, BTF is down by 1.34% and is trading at $25.32 per share, while BITO is trading at $45.15, down by 1.23% over the past few hours. The ETFs could drop lower by next week as the market adjusts to the SEC rejection news.