The United States Securities and Exchange Commission (SEC) has acknowledged VanEck’s 19-b form bitcoin exchange-traded fund (ETF) application. Formally, SEC has started the 45-day countdown for a response to the bitcoin ETF application.
Meanwhile, the SEC has the power to approve, deny, or extend the period of review. However, extensions can be as long as 240 days.
Furthermore, VanEck filed for the ETF earlier this year. On the other hand, the Chicago Board Options Exchange (CBOE) followed shortly, applying for approval to host VanEck’s fund. Also, last March 1, it published its finalized 19-b form application.
More so, if the SEC approves the application, it would make this the first ETF approved in the US. Even more, VanEck has been working hard to get this approval through. In the past years, the investment firm has filed and retracted many applications with little success.
Bitcoin ETF Rejection History
The SEC has yet to approve a single bitcoin ETF application in the US. Moreover, a host of firms have tried and failed to have their ETF approved. However, VanEck is not alone, it was joined by other firms that filed for approval in 2021, including Valkyrie and WisdomTree.
Also, the SEC has been clear about its concerns about rejections indicating a lack of local bitcoin trading volume and manipulation concerns. In addition, the commission is especially concerned that those applying have not demonstrated the exchange capability to protect its users from fraud and manipulation practices.
More so, the firms are pushing the agenda because they believe that ETFs are the new futures. Added to this, institutional investment directly in bitcoin is already on the rise, with multiple investment firms buying up coins.
Recently, Canada approved its third Bitcoin ETF as it earned tremendous success. Moreover, Canada is the first country in North America to approve an ETF which was approved in February 2021.
Furthermore, this move and its subsequent success bring hope that the SEC will be encouraged by the vote of approval.
This article first published on coinquora.com
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Source: Cryptocurrency - investing.com
