VanEck files another application for a spot Bitcoin ETF

Updated: 02 July 2022

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VanEck, a New York-based investment management firm, has filed another application with the US Securities and Exchange Commission (SEC) for a spot Bitcoin exchange-traded fund (ETF). The SEC has previously rejected VanEck’s applications for this product.

VanEck files for another spot Bitcoin ETF

VanEck plans to offer a product that will track the performance of Bitcoin. The investment manager has filed several applications with the SEC for this product in the past, but they have all been turned down.

The last application was rejected in November last year, with the SEC saying that VanEck failed to meet the requirements to have such a product be free from fraud and manipulation. The SEC also said its decision was triggered by the need “to protect investors and the public interest.”

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After the SEC rejected the application, the Director of Digital Assets at VanEck, Gabor Gurbacs, expressed his frustration with the regulatory body, saying there was no adequate reason for the application’s rejection. At the time, Gurbacs also said that a physical Bitcoin ETF was “arguably the most investor-friendly option today.”

Despite its previous failures, VanEck is adamant about having its spot Bitcoin ETF trading in the US. In the recent application, VanEck said, “The only consistent outcome would be approving spot Bitcoin ETPs on the basis that the Bitcoin futures market is also a regulated market of significant size as it relates to the Bitcoin spot market.

SEC rejects Grayscale ETF application

The SEC must determine whether to approve or reject this application by March 3, 2021. However, the chances of approval are minimal, as the regulatory body recently dismissed an ETF application filed by Grayscale.

Grayscale, the world’s largest digital asset manager, had planned to concert its GBTC Trust into a spot Bitcoin ETF. However, the SEC said the proposal failed to meet the required standards to prevent fraud and market manipulation.

Shortly after this product was rejected, the CEO of Grayscale, Michael Sonnenshein, said that the company was suing the SEC for failing to abide by the Administrative Procedure Act and the Securities Exchange Act.

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