The US Securities and Exchange Commission (SEC) has rejected VanEck’s application to launch a tradable exchange-traded fund (ETF) with direct investment in bitcoin.
The American regulator has repeatedly postponed a decision on the VanEck application. The last time the deadline was postponed was in September – the consideration of the application was postponed to November 14.
“This decree does not approve of the proposed rule change. The Commission concludes that the BZX fund does not comply with the requirements imposed by the Stock Exchange Law and the Commission’s Rules of Practice. The proposal, in particular, does not comply with paragraph b5 of section 6 of the Stock Exchange Law, which states that funds on the national stock exchange must be “formed to prevent fraud and market manipulation” and “to protect investors and the public interest,” it said. SEC notification.
As a reminder, the regulator recently approved several ETFs for Bitcoin futures. This is a significant change in the SEC’s attitude towards cryptocurrency investment products. But it seems that the department is not yet ready to launch funds with direct investments in bitcoin.
It’s worth noting that VanEck already operates a Bitcoin futures fund. However, such funds are less profitable compared to direct investment funds.
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