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SEC Delays VanEck’s Bitcoin ETF Application by 45 Days

SEC Delays VanEck's Bitcoin ETF Application by 45 Days

An request for a Bitcoin exchange-traded fund (ETF) was delayed by the U.S. Securities and Exchange Commission (SEC) on August 24, according to a filing. Investment advisor VanEck has had its application for a Spot ETF delayed by the SEC for 45 days.

For those interested in putting their money into the cryptocurrency market, exchange-traded funds (ETFs) are a great option. The SEC has not yet given final approval for trading of the Bitcoin Spot ETF, which is pegged to the price of BTC.

SEC Requests Additional Time

Until further notice, the Bitcoin Spot ETF has not received official approval from the relevant regulatory commission. It needs more time to think things over before taking any action.

While it is possible that the commission could approve Bitcoin ETF products, precedent suggests that this is highly unlikely. In addition, the agency has rejected a number of spot ETF applications from various companies. The application has been halted while the regulator says it will review it in 45 days.

However, the company’s clientele are eager for recognition, as they have been advocating for the Spot ETF on VanEck. The SEC’s inaction has brought the VanEck Bitcoin Trust to the verge of inactivity.

Spot ETF proponents hope that regulatory greenlighting will give the market a boost. The SEC’s approval of the Spot ETF applications will ease investor concerns about the market stability of these products.

The SEC is also worried about the lack of protection for investors in ETF trading and market manipulation. Therefore, this was cited as the primary reason the commission was hesitant to green-light the Bitcoin Spot ETF.

The SEC is in for some resistance

Digital asset managers are pushing back as authorities outline more rules for monitoring the cryptocurrency market. Despite calls for the SEC to approve the Bitcoin Spot ETF immediately, the agency is still waiting to make a decision. However, the commission’s inability to approve any companies has led to a number of unpleasant incidents.

Grayscale went to court after its bid to convert the Grayscale Bitcoin Trust into a Spot ETF was turned down. The company filed suit against the SEC after it took enforcement action. The duration of the lawsuit is estimated to be between the first and third quarters of 2023 and 2024.

The SEC’s stance against crypto firms planning to issue Bitcoin Spot ETFs has been consistent thus far. A year ago, it approved the Bitcoin Futures ETF despite rejecting over a dozen applications. Managers of digital assets still have a hard time winning over the government.

Cryptocurrency markets will have to wait for some time before the first Bitcoin Spot ETF is approved. Only rules and regulations can inspire action, but that will take time.

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.