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See why the SEC rejected the long-awaited Bitcoin ETF spot

Despite approving a string of Bitcoin futures requests last month, the SEC rejected VanEck’s latest request for a Bitcoin spot ETF.

On November 12, the US Security and Exchange Commission (SEC) again rejected the request from VanEck’s Bitcoin ETF spot, citing a number of reasons, including the need to protect investors from the volatile nature of the main digital asset.

SEC rejects VanEck again

Cryptocurrency enthusiasts had hoped that the main financial regulator would finally approve the listing of the application in sight of VanEck, after it approved a series of Bitcoin Futures ETFs last month.

However, the SEC insisted that it would not approve an ETF that provides direct exposure to Bitcoin due to its volatile nature, along with the fact that it is uncertain whether the ETF would be able to prevent fraudulent trades and also protect investors.

This request disapproves of the proposed rule change. the commission concludes that BZX has failed to comply with its charges under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of the Exchange Act Section 6(b)(5), in particular the requirement that the rules of a national stock exchange are “designed to prevent fraudulent and manipulative acts and practices” and “to protect investors and the public interest,” said Friday’s notice.

Crypto community reacts to recent SEC rejection

With the news of the latest SEC rejection, members of the crypto community were quick to register their displeasure with many of them. questioning why the commission would be willing to accept a Bitcoin futures ETF while rejecting a Bitcoin spot ETF.

A Bitcoin futures ETF is different from a Bitcoin spot ETF in that the latter provides direct investment exposure to the digital asset, while the former allows investors to gain indirect exposure to the asset through buying shares, through of brokerage accounts.

One of the responses to the SEC’s decision came from the Blockchain Association, which he wrote that she was “disappointed” with the decision taken by the agency led by Gary Gensler.

Jan Van Eck, the company’s CEO, also tweeted about his disappointment with the new decision. According to him:

Investors should be able to gain #BTC exposure through a regulated fund and that a non-futures ETF structure is the superior approach.

Source: CryptoSlate

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