VanEck must be patient for longer to decide on bitcoin ETF spot market

Last Updated: 26 August 2022

The Securities and Exchange Commission (SEC) has postponed its decision on a bitcoin ETF.

Bitcoin ETF

In itself, this is not news, as the US exchange watchdog has done this many times before. This time it was VanEck’s application for a spot bitcoin exchange-traded fund.

The asset manager, which has already launched a number of bitcoin funds in Europe, has been told it will receive a response by 11 October. This is the new date by which the SEC must “approve or disapprove the proposed amendment.”

The previous deadline was August 27, but the SEC felt it did not have enough time to review the submission properly. Now they are coming up with an extension just before this “old” deadline. The SEC noted that it had not received any comments on VanEck’s submission.

An ETF allows investors to have exposure to bitcoin without having to understand everything about private keys. The bitcoin is then bought by the fund manager from the spot market and held for the client for a commission.

From postponement… comes?

The asset manager submitted the request on 24 June. With the postponement rejection, there is still no bitcoin spot market ETF on the US market. Numerous attempts have been rejected, except for those for a futures-based ETF. ProShares and Valkyrie, among others, have already been allowed to market this type of bitcoin fund.

The SEC remains consistent in its reasoning: they are concerned about market manipulation and want to protect investors.

The pressure on the SEC is increasing. Grayscale even went to court after their filing was rejected on 29 June. The company wants to convert its Bitcoin Trust (GBTC) into an ETF. The decision on the filing of Ark and 21Shares was also postponed. They will receive a final decision by 30 August.

  • Gabriele Spapperi

    Gabriele Spapperi is a veteran cryptocurrency investor and blockchain technology specialist. He became fascinated with Bitcoin and distributed ledgers while studying computer science at MIT in 2011.

    Since 2013, Gabriele has actively traded major cryptocurrencies and identified early-stage projects to invest in. He contributes articles to leading fintech publications sharing his insights on blockchain technology, crypto markets, and trading strategies.

    With over a decade of experience in the crypto space, Gabriele provides reliable insights and analysis on the latest developments in digital assets and blockchain platforms. When he's not analyzing crypto markets, Gabriele enjoys travel, golf, and fine wine. He currently resides in Austin, Texas.

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