SEC Rejects VanEck's Application for Spot Bitcoin ETF

The US Securities and Exchange Commission rejected the proposal to list the spotexchange-traded bitcoin fund.

The agency that regulates the securities marketsin the United States made the final decision on the proposed VanEck fund. The last postponement on the application was made in September, after which the deadline was set at 14 November.

The Commission concludes that BZX failed to comply with itsburdens under the Exchange Act and the Commission's Rules of Practice to demonstrate that its proposal complies with the requirements of Section 6(b)(5) of the Exchange Act, specifically the requirement that the rules of a national securities exchange must be "designed to prevent fraudulent and manipulative practices" and "to protect investors and the public interest," the SEC said in a statement released Friday.

This rationale echoes the positionagency, according to which several years ago it rejected Cameron and Tyler Winklevoss's proposed Bitcoin ETF. At the time, the Securities and Exchange Commission said market manipulation issues had to be addressed before a spot product could be approved.

There are currently other applications for spot Bitcoin ETFs pending before the SEC.

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