The U.S. Securities and Exchange Commission (SEC) rejected VanEck’s long-awaited spot Bitcoin ETF application on Friday as it continues to be concerned about potential fraud and manipulative practices in the cryptocurrency space.
In the order issued on Friday morning, it was stated that the application in question did not meet the conditions sought to “prevent fraudulent and manipulative behavior and practices” and “protect investors and the public interest”.
This decision seems to be in line with recent comments from SEC Chairman Gary Gensler, who favored the launch of a futures-based Bitcoin ETF rather than investing directly in the underlying cryptocurrency.
The ProShares Bitcoin Strategy ETF was the first futures-based Bitcoin ETF released last month and had a record-breaking opening, demonstrating a real demand for Bitcoin among investors.
However, a futures ETF can result in below-average returns for investors compared to owning the cryptocurrency directly. That’s why investors are eager for a Bitcoin spot ETF similar to gold and silver ETFs that hold the underlying physical commodity. Although the SEC has given a negative response at the moment, it may change its mind in the future.