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What’s in the VanEck filing of Spot Bitcoin ETF’s new application?

source-logo  thecoinrepublic.com 01 July 2022 11:30, UTC

After multiple rejections of Spot Bitcoin Exchange Traded Fund applications, one more came from VanEck

Many investment firms and trusts are looking towards Spot Bitcoin (BTC) ETFs, for which many times they have turned towards the American regulator, United States Security and Exchange Commission for filing their applications. Even after numerous efforts made by different firms in various application filings, spot bitcoin ETF requests have been consistently rejected by the SEC. 

Now, one of the prominent investment firms, VenEck has filed another spot bitcoin ETF application with the US SEC. Recently VanEck Bitcoin Trust’s request from investment giant VanEck came after about eight months when its previous application before the SEC regarding the same got rejected. 

Recently filing of an application from VanEck also got attention given the timing when just a day earlier, the SEC rejected the application of the spot bitcoin ETF from Grayscale Investments and Bitwise. The United States watchdog has again repeated its concerns about the ability of applicants as if they are capable of protecting investors and preventing market manipulation. However, it’s only the Spot Bitcoin ETF that got rejected repeatedly, where many bitcoin futures ETFs have gained approval from the agency. 

Recent application filing of VanEck, while citing the example of spot commodities and currency markets, said that it had got approval regardless of the fact that spot ETPs are unregulated. Further it also stated that the commission has relied on the futures market underlying these commodities as the regulated market having a significant size that acted as the basis for approving the number of Trust Shares based upon currency and commodities such as gold, silver, palladium, copper, platinum and other such commodities. 

Generally, a Spot Bitcoin ETF consists of bitcoin or other such assets who are related to the price of bitcoin. Those who support spot bitcoin ETF and seek its approval argue that the financial product would offer an easily accessible and affordable way at a low cost for both individuals and institutions in order to make investments in bitcoin. 

As far as recent rejection of the Spot bitcoin ETF application of Grayscale Investment is concerned, it had gone on to file a lawsuit against the United States Securities and Exchange Commission itself. This came as an instant reaction where the investment firm filed the suit within just an hour of its application’s rejection. In its lawsuit, Grayscale Investments has asked the United States Court of Appeals at Columbia Circuit District to review the order of the US SEC.