VanEck’s BTC ETF is under review, will the SEC approve it?
2 min readThe Securities and Exchange Command (SEC) has acknowledged VanEck’s BTC exchange-traded fund proposal, publishing it on its website. This means the regulatory body will have 45 days to decide the launch of a BTC ETF. If the SEC doesn’t deny or approves the proposal, it could extend the review process to 240 days.
First American BTC ETF
VanEck, an asset management company, made several attempts in the past to launch a BTC ETF. On March 2, VanEck attempted to launch the product via the Chicago Board Options Exchange (the Cboe). The Cboe filed with the SEC to list VanEck’s proposal.
Before that, the asset manager filed numerous proposals to the SEC, in an attempt to launch its BTC ETF. But like many other companies, it rejected by the SEC, citing “extreme volatility” and “possible market manipulation”.
The SEC has rejected all submissions since then. But if the SEC approves VanEck’s proposal, it could become the first BTC open-traded product in the market. Thus, American investors would get more exposure to the highest-market cap crypto.
Other countries ahead of the U.S.
Recently, other countries have sprung ahead of the United States, such as Canada and Australia. Canada approved a BTC ETF with $420 million in assets in just two days, following huge demand from investors. Now, giants like Mike Novogratz’s Galaxy Digital are aiming at the Canadian market to launch more BTC ETFs.
In Australia, regulatory bodies like AUSTRAC are exploring proposals submitted by several companies seeking to launch a BTC ETF. The institution will review the submissions with great possibilities to be approved.
A few months ago, BTC ETFs were considered “unlikely.” However, under new management, the SEC could finally approve a BTC ETF with Gary Gensler, its new Chairman. Gensler is a crypto-advocate from a legal and technical perspective, having previously made comments in support of blockchain technology.
When it comes to cryptocurrencies and their integration into the economy, Gensler believes digital assets and blockchain can have a positive effect. Moreover, it can reshape the way citizens view payments and finance. On the other hand, Gensler also calls for instruments and laws that can protect investors from the inherent volatility of the crypto market, such as major events like hacks or scams.
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