Bitcoin ETF Hopes Dashed as SEC Rejects VanEck Proposal for Third Time
VanEck’s bid for a Bitcoin spot ETF has once again been rejected by the U.S. Securities and Exchange Commission (SEC), according to a filing on March 10.
The SEC rejected a rule change proposed by Cboe BZX Exchange to list VanEck’s ETF.
The SEC has cited a lack of evidence that ETF providers can prevent market manipulation as a core issue.
Other firms, including ARK Invest, Valkyrie Investments, and WisdomTree, have rejected similar proposals for virtually identical reasons.
While the SEC’s reasoning has been consistent, two SEC commissioners, Hester Pierce, and Mark Uyeda have criticized the regulator’s decision, claiming that the rules for Bitcoin spot ETPs are unfairly burdensome.
Grayscale has challenged the SEC in court over its proposed ETF conversion, and the case outcome could impact future decisions around ETF approvals.