Van Eck Frustrated By SEC’s Nov 12 Spot BTC ETF Snub - High Tech Blog - Crypto Guide, Alt Coins, Viral News, Gossips | LoadedPulseHigh Tech Blog – Crypto Guide, Alt Coins, Viral News, Gossips | LoadedPulse Van Eck Frustrated By SEC’s Nov 12 Spot BTC ETF Snub - High Tech Blog - Crypto Guide, Alt Coins, Viral News, Gossips | LoadedPulse

Van Eck frustrated by SEC’s Nov 12 Spot BTC ETF Snub

Van Eck frustrated by SEC’s Nov 12 Spot BTC ETF Snub

  • The US Securities and Exchanges Commission (SEC) has rejected VanEck Funds’ application for listing a Bitcoin (BTC) Spot Exchange Traded Fund (ETF).
  • The decision has left Jan Van Eck, the fund’s chief executive, frustrated.’

 

Van Eck frustrated by SEC’s Nov 12 Spot BTC ETF Snub

The SEC has left Jan Van Eck, chief executive of VanEck Funds, a frustrated man. He’s frustrated because the watchdog dashed VanEck’s hopes of launching a BTC Spot ETF on Friday.

Consequently, Van Eck took to Twitter to express his frustrations with the agency. In the post, he told of his disappointment at the SEC’s rejection of their application.

 

The firm had sought approval for its product in late 2020. It had roped in crypto trading platform Cboe BZX Exchange. This exchange was to list the EFT once accepted.

Cboe was also the one behind VanEck’s push for regulatory acceptance. The exchange had sought a change in the SEC’s rules to allow for the ETF’s listing.

Notwithstanding the disappointment, Van Eck held that investors should access BTC through regulated funds. And to him, a non-futures ETF is the best option for achieving that goal.

 

The VanECk-Cboe BZX application had attracted a lot of attention within the U.S. Had it gone through, it would have ushered in a new era in spot BTC ETF trading. Besides, the regulator had postponed a decision on the matter severally.

SEC dimming Van Eck

The SEC stated that the fund fell short of Section 6(b)(5) of the Exchange Act. This section requires national securities exchanges to show the ability to stem fraud and manipulation. Again, they should look to secure the interests of both investors and the public.

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Before the announcement, there was a growing expectation that the SEC would greenlight the ETF. This belief had speculators suggesting that BTC would ride on the approval to get to $80,000. Eric Weiss, a digital asset manager, is one of them.

 

However, not everyone shared this optimism. Some analysts had already cast doubt on VanEck’s success in its application. For instance, Bloomberg’s Eric Balchunas had given the application a less than one percent chance of succeeding.

While painting those grim prospects, Balchunas had mentioned the SEC’s knack for denying such applications. For emphasis, he stated that the Eagles had better odds of clinching the Super Bowl. The Eagles are one of the less fancied teams in the NFL.

True to their tradition, The SEC dimmed VanEck’s hopes. The agency’s opposition to BTC-tracking ETFs is well documented. Its chair Gary Gensler has shown support for future-based BTC ETFs.

 

Gensler has also likened the crypto ecosystem to the wild west. Moreover, he holds that the cryptoverse is prone to abuse. That’s because it’s teaming with fraudsters and scammers.

Which way Spot ETF?

SEC’s decision has divided opinions among crypto lovers. The Blockchain Association, for instance, has taken issue with the decision. It has expressed its disagreement with the agency for refusing investors access to Spot BTC ETFs.

 

The association has questioned the legal thinking guiding SEC’s ruling. It wondered why the regulator seems to discriminate against BTC. Furthermore, it has called for the approval of the ETF just as the SEC did the futures-based one.

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Others like Twitter use @saltyboyy1 seem less bothered by the turn of events. Commenting on Jan Van Eck’s tweet, he said that that shouldn’t be a concern. He insisted that BTC didn’t need a spot ETF as it had done well without one over the last decade.

Following Friday’s decision, the fate of other such applications remains in the balance. Some analysts hold that the ruling has merely delayed the rollout of a product that many are clamoring for.

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