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VanEck, the New York-based asset management firm, is once again forced to wait for the U.S Securities and Exchange Commission (SEC) to rule on its latest Bitcoin exchange-traded fund (ETF) application.
Van Eck, which has over $65 billion in assets under management, submitted its latest spot Bitcoin ETF application on June 24, with the previous deadline for the regulator’s decision expiring on August 27.
If approved, VanEck’s product would trade on the Cboe BZX Exchange.
In an August 24 filing, the SEC said it was extending the decision on VanEck’s application by another 45-day period, until October 11, when the regulator would "either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change."
According to the SEC, “the Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.”
The agency also said that it “has received no comments on the proposed rule change” since calling for feedback on July 13.
In November 2021, the SEC rejected VanEck’s previous application citing concerns surrounding “fraud and manipulation” of the Bitcoin spot market.
SEC and the Bitcoin ETF
An ETF is an investment tool that allows investors to buy shares representing the underlying asset. A Bitcoin ETF would therefore allow investors to gain exposure to Bitcoin without the hassle of buying the cryptocurrency from an exchange and storing it in a crypto wallet.
While Gold, real estate, and foreign currency ETFs are quite popular among U.S. investors, they are yet to see a Bitcoin-based equivalent—despite numerous attempts to launch such a product.
The SEC has repeatedly turned away multiple applications for a spot-based Bitcoin ETF. It has, however, approved several Bitcoin futures ETFs last year after the agency’s chair Gary Gensler hinted that the Commission would be inclined to approve such products.
VanEck, along with the likes of ProShares and Valkyrie, was among those few companies to launch a Bitcoin futures ETF—the firm’s Bitcoin Strategy ETF (XBTF) debuted on the Cboe-owned BATS Global Markets exchange in November 2021.