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VanEck CEO says firm will continue to push for a spot bitcoin ETF

  • VanEck’s CEO says the rejection of its application is not the end, noting in an interview that the firm “will be back.”

VanEck is not giving up on its push for a spot Bitcoin ETF, according to the firm’s CEO Jan van Eck.

The VanEck chief said this on the podcast Scoop, telling The Block’s Frank Chaparro that, despite a recent disappointment, it’s still all hands on deck as the company looks to put in new crypto funds applications.

In November, the US Securities and Exchanges Commission (SEC) recently rejected VanEck’s application for a spot Bitcoin ETF, a move that sees the US market still waiting for its first exchange-traded fund tracking the current market price of Bitcoin.

Grayscale Investments hit back at the SEC for rejecting the VanEck spot ETF, saying the regulator’s move to approve only futures ETFs showed discrepancies in its approach. The investment manager wants the agency to allow its application for a BTC product to be listed on the NYSE, stating that US investors are missing out on the opportunities that come with investing in funds that track BTC prices.

Vowing to “be back“ with yet another application, van Eck pointed to the potentially helpful responses from two members of the US Congress. He says that the letter by the policymakers to the SEC regarding the Bitcoin ETF was a plus, even if the agency acted as it did.

Notably, van Eck compared the SEC’s rejection of the product to what happened before the regulator finally allowed gold bullion ETFs. He noted that, just like in current scenarios, the US regulator was keen on gold futures ETFs before eventually approving one that tracks spot gold.

Van Eck also talked about the investment firm’s plans in jurisdictions other than the United States.  He said that while the firm remains focused on having spot crypto products launched in the US, there are efforts to expand services and products tailored to the European market.

VanECK’s futures-based Bitcoin ETF is one of three that were recently allowed by the SEC, with the other two from ProShares and Valkyrie.

The post VanEck CEO says firm will continue to push for a spot bitcoin ETF appeared first on Coin Journal.

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Grayscale says SEC’s rejection of spot Bitcoin ETF has ‘no basis’

  • The SEC recently approved three Bitcoin Futures ETFs, but is yet to allow one that tracks the cryptocurrency’s spot market price.
  • A spot ETF would allow direct exposure to BTC, with investors tracking the current spot market price of the cryptocurrency.
  • For its rejection of past spot ETF applications, the SEC has maintained the crypto sector is not ready given the potential for consumers to be exposed to fraud and price manipulation.

Grayscale has told the US Securities and Exchanges Commission (SEC) that its decisions against spot Bitcoin exchange-traded funds (ETFs) is incongruous with the regulator’s other actions related to Bitcoin futures ETFs.

In a letter the investment management firm sent to Vanessa Countryman, the SEC’s secretary, Grayscale points out some of the reasons it says explains why the securities watchdog has “no basis” to keep rejecting Bitcoin spot ETFs.

Grayscale’s letter comes days after the SEC once again rejected another physically-settled BTC exchange-traded fund, adding the proposal by VanEck to a long list of applications thrown in the dustbin.

According to the firm, which has applied to have its flagship Bitcoin Trust (GBTC) approved as a spot-based exchange-traded product (ETP), questions why the regulator has seen it fit to approve futures-based bitcoin ETFs and not one that tracks the actual cryptocurrency’s spot price.

Over the past few weeks, the SEC has allowed investments in the ProShares, Valkyrie, and VanEck futures-based ETFs. Incidentally, the approvals came on the back of comments from SEC Chair Gary Gensler that appeared to favour futures-based over spot-based Bitcoin ETFs.

“The Commission has no basis for the position that investing in the derivatives market for an asset is acceptable for investors while investing in the asset itself is not,” the firm’s letter reads.

Per Grayscale, and in reference to its NYSE Arca BTC filing, the regulator would be taking exactly the above position if it goes ahead to deny the application having already greenlighted the three Bitcoin futures products.

Grayscale believes approving the futures-based products and rejecting the spot-based applications violates the Administrative Protections Act (APA).

On 12 November, the Commission rejected the VanEck spot Bitcoin ETF, with reasons largely premised on the failure of the listing exchange to comply with the rules and requirements set out in Securities Exchange Act of 1934 (Exchange Act). Specifically, the SEC holds the view that the crypto market still cannot “prevent fraudulent and manipulative acts and practices.”

The letter states that the SEC’s grounds for rejecting Bitcoin spot ETFs follow a rationale that fails to “take account of significant regulatory and competitive developments since 2017” the first time the Commission rejected a spot BTC exchange-traded fund.

Grayscale wants the regulator to approve its application to list and trade BTC on the NYSE, noting that despite the cryptocurrency becoming extremely popular as an investment asset, US investors have no access to a product that closely reflects its spot prices.

The SEC is expected to give its initial verdict on the Grayscale BTC product before the end of the year.

The post Grayscale says SEC’s rejection of spot Bitcoin ETF has ‘no basis’ appeared first on Coin Journal.