VanEck Reapplies for Spot Bitcoin ETF with the SEC
- The SEC raised concerns regarding the ability of VanECK to prevent market manipulation and the overall security of the retail investor.
Eight months after the Securities and Exchange Commission rejected its application for a Spot Bitcoin ETF, a leading investment firm, VanEck submitted a new proposal. According to the new proposal, the investment firm noted that Spot commodities and currency markets which the SEC has approved previously for spot ETPs are unregulated.
The filing stated that the commission depended on the underlying futures market as a regulated market of an important portion that made up the criteria for approving the variety of Currency and Commodity-Based Trust Shares. This includes gold, silver, platinum, copper, palladium, currency, and other assets.
Controversies surrounding the previous rejection
Previously, the SEC dismissed a request from the Cboe BZX Exchange to list and trade shares of VanEck’s BTC Trust. Then, the SEC made it known that any rule change that might influence the approval of the ETF will be void of preventive measures against fraudulent acts at the expense of investors and the public interest.
In addition, the SEC disclosed that the BZX didn’t meet the required criteria of the commission. The SEC revealed that it is important for an exchange listing a derivative securities product to agree with surveillance-sharing of markets that trades the underlying assets.
This also included the floating of exchange regulations and federal securities laws.
The previous rejection didn’t only affect VanEck alone, the SEC also rejected the applications of Grayscale Investment and Bitwise. In reaction, Grayscale investments filed a lawsuit against the commission a few moments after the firm got to know about the rejection.
Through the lawsuit, Grayscale seeks redress in the decision of the SEC, asking the U.S. Court of Appeals for the District of Columbia Circuit to overturn the decision of the SEC.
The SEC raised concerns regarding the ability of the applicants to prevent market manipulation and project investors. Accordingly, the SEC stated its commitment to protecting investors, however, the commission has approved numerous Bitcoin futures ETFs in the past.
VanEck is a global investment manager based in New York, U.S.A. The firm assists companies in discovering projects that are good for investment. On December 20, 2011, the firm launched the ‘VanEck Semiconductor ETF (SMH)’ which is a passively managed exchange-traded fund formulated to deliver wide exposure to the Technology – Semiconductors segment of the equity market.
Investor-friendly, sector ETFs offer numerous options to achieve low risk and differing exposure to a large group of firms in a given sector. Technology – Semiconductors is one of the 16 broad Zacks sectors within the Zacks Industry classification.
Recently, the firm announced its entrance into the Metaverse by unveiling a collection of 1,000 NFTs. The VanEck Community NFT is based on the Ethereum network and features an illustration of Alexander Hamilton called “Hammy” as he journeys through time and space in his quest to comprehend past, present, and future financial policies.