Jan van Eck, the CEO of VanEck, is pessimistic about approving a Bitcoin exchange-traded fund (ETF). The executive has said that the US Securities and Exchange Commission (SEC) is unlikely to approve a spot Bitcoin ETF soon.
VanEck CEO says approval for a spot Bitcoin ETF is unlikely
In an appearance on Bloomberg TV, the CEO of the investment management firm has said that the regulatory framework for cryptocurrencies is currently unhealthy. This resulted in the delay in approving products related to crypto assets.
VanEck filed for a spot Bitcoin ETF in March last year. The ETF could track the price of the market price of Bitcoin. However, like many other applications, the SEC rejected VanEck’s application in November. According to the regulator, the regulations surrounding cryptocurrencies were unclear. The SEC further said that cryptocurrencies were prone to manipulation.
In October, the SEC approved the first Bitcoin ETF tracking BTC futures. This helped create a bullish sentiment in the market, and BTC rallied to a new all-time high of $69,000. However, the SEC has been reluctant to approve an ETF that will directly track the price of Bitcoin.
In March, the CEO said that the company’s spot Bitcoin ETF was “held hostage” by the SEC’s refusal to give the product a greenlight. In an interview with Anthony Pompliano, he said that the SEC was waiting to gain jurisdiction over the crypto market. The SEC does not have official jurisdiction to regulate the crypto market.
Grayscale threatens to sue SEC
The refusal of the SEC to approve a spot Bitcoin ETF has threatened to land the regulator into legal woes. The world’s largest digital asset manager, Grayscale, has openly condemned the SEC’s reluctance for an ETF.
Grayscale has also filed an application for a spot Bitcoin ETF, but the SEC has refused to approve it. Grayscale has threatened to take the SEC to court if it refuses to approve this product. Grayscale has also unveiled an ad campaign asking for sup[port to ensure the SEC approves its ETF.
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