A first spot Bitcoin exchange traded funds in the United States remains uncertain as on Friday the Securities and Exchange Commission (SEC) has officially disapproved VanEck’s spot Bitcoin ETF months after the firm applied for it in June.

In a filing on Friday, the SEC denied a proposed rule change from the Cboe BZX Exchange to list and trade shares of VanEck’s Bitcoin (BTC) Trust. The SEC said any rule change in favor of approving the ETF would not be “‘designed to prevent fraudulent and manipulative acts and practices” nor “protect investors and the public interest.”

Furthermore, the SEC said in its filing:

“The Commission concludes that BZX has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of Exchange Act Section.”

The U.S. regulator added:

“It is essential for an exchange listing a derivative securities product to enter into a surveillance-sharing agreement with markets trading the underlying assets for the listing exchange to have the ability to obtain information necessary to detect, investigate, and deter fraud and market manipulation, as well as violations of exchange rules and applicable federal securities laws and rules.”

Following VanEcks publication in the Federal Register on March 19, the SEC used a total of 240 days until November 14 to make its decision. It had previously extended the deadline twice on April 28 and September 8.

The rejection comes as a blow to many investors. Nevertheless. In October, the SEC had already approved ETFs linked to Bitcoin futures contracts by giving the greenlight to Valkyrie and ProShares’ BTC Strategy ETF’s.

Bitcoin’s price dipped shortly after the news and is currently trading around 10% below its latest all-time high of November 10.

Recently, U.S. Representatives Tom Emmer and Darren Soto called on the Securities and Exchange Commission (SEC) to allow Bitcoin spot exchange-traded funds (ETFs). The two made their appeal in a bipartisan letter sent to the SEC chairman, Gary Gensler.

The post VanEck’s Spot Bitcoin ETF Rejected by SEC appeared first on iGaming.org.

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