The latest application for a spot Bitcoin (BTC) exchange-traded fund (ETF) by international investing giant VanEck has been postponed by the Securities and Exchange Commission (SEC).
For some time now, the company has been attempting to obtain approval for what will be the first spot Bitcoin ETF in the U.S. VanEck’s first application was submitted to the SEC in 2017 but was ultimately denied for approval.
The SEC rejected VanEck’s second application in November 2021, citing that the company had not complied with requirements to safeguard investors and prevent fraudulent and manipulative practices.
VanEck persisted and submitted a third BTC ETF offering application to the SEC in June 2022, outlining several reasons why the SEC should reevaluate its earlier rulings.
VanEck’s main argument was that Canadian exchange-traded instruments with BTC spot exposure are available for American funds. In February 2021, Canada became one of the first nations in the world to authorize a spot Bitcoin ETF.
The SEC’s deadline for approving VanEck’s most recent filing was expected to expire on August 27th, however the agency decided to postpone its decision on the matter by nearly two months.
After calling for public consultation in July 2022, the SEC now has until October 11th to make a decision and reported that it had not received any comments on the proposed rule change:
The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.
An American spot Bitcoin ETF has been a huge talking point within the industry since 2017, which would effectively let institutional investors purchase shares representing Bitcoin’s price and be held by VanEck. This provides investors access to Bitcoin without requiring them to store and own it personally. If approved, VanEck plans to list its spot BTC ETF on the Cboe BZX Exchange.