VanEck's long-shot attempt to launch a spot Bitcoin exchange-traded fund has failed.
The VanEck Bitcoin ETF proposal, which was submitted by the global investment manager in March, has been rejected by the U.S. Securities and Exchange Commission.
In a 51-page order, the SEC has reiterated its concerns regarding fraud and manipulation in the crypto market:
The Commission concludes that BZX has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of Exchange Act Section 6(b)(5), in particular, the requirement that the rules of a national securities exchange be “designed to prevent fraudulent and manipulative acts and practices” and “to protect investors and the public interest.”
Bitcoin has dropped to the low-$62,000 level on the news, and it is currently trading at $62,753 on the Bitstamp exchange. The cryptocurrency is down roughly 8.77% from the record high of $69,044 that was recorded on Nov. 10.VanEck's proposal was widely expected to be shot down by the SEC, which might explain why there is no major sell-off.
The SEC approved the first futures-based Bitcoin ETF in October, prompting a rally to record highs.
As reported by U.Today, Grayscale filed an application to convert its Bitcoin fund into a spot ETF last month.