BREAKING: Spot ETF for Bitcoin Rejected by SEC
Bitcoin Spot ETF Rejection: everything you need to know on this breaking story.
Covered:
- SEC has rejected VanEck Spot ETF
- Bitcoin is down off the news, but only 2% on the day
- Bitcoin-related stocks like Hut mining are still up over 6%
- SEC claims investor protection is not “strong enough”, citing fraudulent trading concerns
- Tether may be a reason as to the rejection
ETF News, ETF Blues
Bitcoin and Bitcoin-related stocks are down off of reports that the SEC has rejected a spot Bitcoin ETF by Vaneck Bitcoin fund. This was the moment that many in the space thought would propel Bitcoin to new heights. But the ETF elation has turned to ETF consternation. Many are puzzled: if Gensler and the SEC approved a futures ETF, why not a spot ETF?
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Many thought it was only a matter of time. The reason people were so excited for the Spot ETF was due to the fact that the fund would have to buy and hold physically settled Bitcoin–in an environment that has seen Bitcoin’s supply diminishing consistently from exchanges, this would cause a major supply squeeze.
However, it appears we will have to wait yet longer for a spot ETF. In light of all this, Bitcoin’s price has not seen a “blood in the streets” reaction. At press time, Bitcoin is only down 2% on the day. This goes to show how very few sellers there are in this environment. Alt-coins are holding up relatively well, too.
In The Name of Investor Protection
So why was the spot ETF rejected? Initially, this particular spot ETF, one of many filed with the SEC, was “filed in March by the CBOE BZX Exchange, which wanted the SEC to make a rule change allowing it to list the VanEck bitcoin fund.” The SEC said the CBOE had fallen short in its efforts to convince the SEC that investors would be protected against fraudulent trading. In short, Gensler thinks that there is too much manipulation in the trading of Bitcoin, and he has said as much on many occasions. Tether, the long-troubled stable-coin may have something to do with the rejection. Screenshots of the SEC rejection letter state “manipulative activity involving the purported “stablecoin” Tether and fraud and manipulation at Bitcoin trading platforms.”
The #SEC in the letter rejecting the Vaneck Spot #Bitcoin ETF, also mentioned #Tether. #Retweet pic.twitter.com/MCKKPtk9Jc
— WallStreetPro (@wallstreetpro) November 12, 2021
Many other BTC Spot ETF applications are on the docket for the SEC, and it appears they will need convincing that the trading of Bitcoin is not manipulated. There is a glaring and lingering omission from Gensler, and that is that fiat currencies intrinsically create a manipulative environment in stocks, equities, and every other asset that is traded, even when regulated. In this decision, he is putting the cart before the horse. And as seen below, there is always a silver lining when it comes to Bitcoin.
Here's the beauty folks. #Bitcoin gives 2 sh*ts about the approval of a spot ETF. It costs nearly nothing to custody and it settles in 10 min. They are fighting a clock – tick, tock, tick… This thing literally feasts on corruption and manipulation and boy is the plate full.
— Preston Pysh (@PrestonPysh) November 12, 2021
AT PRESS TIME: Grayscale Bitcoin Trust (GBTC), which has applied to become a spot Bitcoin ETF was down 2.9% in the stock market today.
The price of Bitcoin fell 1.4% to $63,923. This comes after multiple record highs this month.
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For other crypto stocks: Coinbase (COIN) was up 0.7%. Microstrategy (MSTR) is down 1.2% and interestingly Hut 8 Mining (HUT) rose 6.9%.
ProShares Bitcoin Strategy ETF (BITO) fell 1.5%. Among other Bitcoin-related ETFs, Valkyrie Bitcoin Strategy (BTF) is down 1.8%.
The post BREAKING: Spot ETF for Bitcoin Rejected by SEC appeared first on CryptosRus.
Text source: CryptosRus
