SEC Rejects VanEck Spot Bitcoin ETF, But its Futures ETF Finally Coming Next Week

The US Securities and Exchange Commission (SEC) rejected rule changes that would have allowed the listing and trading of the VanEck Bitcoin exchange-traded fund (ETF).

In March, the Cboe BZX Exchange filed a proposed rule change to list and trade shares of the Bitcoin Trust, but the SEC again rejected the physically-backed ETF after delaying the decision on the application twice.

This time, the regulator reiterated its long-stated concern that a product based on the spot price of Bitcoin could violate securities rules because the market is too prone to abuse. The SEC in its order, said,

“The Commission applies the same standard used in its orders considering previous proposals to list bitcoin-based commodity trusts and bitcoin-based trust issued receipts — that it must be designed to prevent fraudulent and manipulative acts and practices”

“The Commission concludes that BZX has not met its burden.”

Meanwhile, the agency let the future-based Bitcoin ETFs start trading last month.

As per the document, SEC believes actors could manipulate the spot Bitcoin market without impacting the CME Bitcoin futures pricing, which doesn’t make sense to the crypto industry and the ETF experts.

“Since the SEC has already approved a futures-based bitcoin ETF, we strongly believe it should approve a spot ETF as well. We encourage the SEC to give bitcoin the fair and equal treatment it deserves, and hope future ETF proposals receive their due consideration,” wrote Blockchain Association on Twitter, showing their strong disagreement with the SEC’s decision.

Two bitcoin futures ETFs, the ProShares Bitcoin Strategy ETF (BITO) and the Valkyrie Bitcoin Strategy ETF (BTF), began trading in late October and led to a rally in the price of the leading cryptocurrency.

While its proposal for a spot Bitcoin ETF has been rejected, VanEck has set a date to launch its own futures-based Bitcoin ETF. The ETF (XBTF) is set to launch next week on Nov. 16 on Cboe Global Markets.

At an expense ratio of 0.65%, XBTF undercuts the 0.95% charged by the other bitcoin futures ETFs. The fund is actively managed and reserves the right to invest in bitcoin-related companies closely tied to the price of bitcoin futures.

VanEck has been initially eligible to launch since Oct. 23, but the issuer held off launching.

BITO saw massive attraction as it amassed $1 billion in assets in its just first two days of trading. Meanwhile, after BITO, demand for BTF was far less dramatic as it only has $63 million in assets under management.

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Author: AnTy

SEC Not Approving Bitcoin ETF for Price Manipulation Fears while Stock Market & Oil in Free Fall

To date the US Securities and Exchange Commission (SEC) has rejected several Bitcoin-based exchange-traded fund (ETF) proposals, the latest one was shot down just last month with no pending proposal left for approval anymore.

The primary reason behind these rejections has been “fraudulent and manipulative” acts in the industry.

However, as we have been seeing in the past few weeks, the stock market has been experiencing its worst fall since the 2008 financial crisis. Since the weekend, oil prices have been in free fall as well.

“3x Oil ETN dumps ~52% in a day. No regulator can ever again tell me that a Bitcoin ETF may be too volatile or manipulated. Oil, the single most traded commodity, tumbled 30% as a result of a weekend decision from a small non-sovereign/intergovernmental organization (OPEC),” said Gabor Gurbacs, digital asset strategist at VanEck.

A bitcoin ETF would allow investors to invest in the digital currency without having to purchase or store it.

Earlier this year, ShapeShift CEO Erik Voorhees also called for the need for a bitcoin ETF in the light of 41% premium on Grayscale Bitcoin Trust (GBTC).

“Is it fair to say that premium is the cost the SEC has imposed on investors by coercively preventing an ETF from coming to market? Which party is being helped by them, exactly?” said Voorhees at that time.

According to Nate Geraci, host of ETF Prime, in the absence of bitcoin ETF, institutional or accredited investors can “profit from this premium at the expense of retail investors.”

Impeding Innovation

In a recent conversation on CNBC, Chris Hempstead, the director of institutional business development at ETF and hedge fund provider IndexIQ said the Bitcoin ETF has a bigger chance of approval if the retail demand for the product grows.

“I doubt very heavily that it’s going to be the last straw. I think everyone will continue to listen to the feedback and the notes from the SEC, what their comments are, and they will continue to address it,” said Hempstead.

When investor and market demand will push, the SEC will have another look and have different considerations. However, he is not expecting any “significant changes” in SEC’s decisions in the near future at least.

Bitcoin enthusiast Hodl wave feels it’s good that the bitcoin ETF isn’t approved yet as there’s “code to write, infrastructure to build, and sats to stack.”

“Let the Hodler base and maturing market take us to $250k / BTC and let the boomers handle the next 10x,” said Hodl Wave.

In the light of the Wilshire Phoenix’s Bitcoin ETF rejection, SEC commissioner Hester Peirce also published a dissenting statement where she slammed the SEC for its biased treatment of the bitcoin-related products.

Hester whose term at SEC is expiring on June 5 said this conservative approach “impedes innovation in this country and threatens to drive entrepreneurs, and the opportunities they create, to other jurisdictions.”

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Author: AnTy

Creditplus Bank AG Report: Three of Four German Citizens Do Not Approve Libra Coin’s Launch

Facebook-backed cryptocurrency, Libra, rejected by most German citizens according to a recent survey on people over the age of 16.

The percentage of “no-Libra” choice non-surprisingly increases with age as the older population still try to get their heads around decentralized technologies.

Over 73% of Germans won’t use Libra

According to a report released by Toluna, a market research institute, for WirtschaftsWoche and Creditplus Bank AG, on over 2000 German citizens aged 16 and over, Libra remains unpopular in the country – only 27% of the population claim they would use the stable coin for transactions, both locally and cross border.

In the comprehensive report, 42% of the respondents claimed they would not use Libra due to Facebook’s privacy issues. Furthermore, 31% of the respondents have faith in their state controlled currencies and would not switch to the stable coin.

Younger generations more open to Libra

As expected, the percentage of respondents rejecting adoption and use of Libra aged 35 and above is significantly higher than the younger population. Over 85% of Germans in the higher age groups (over 35) claim they would not use the cryptocurrency with 42% of respondents between the age 22-35 accepting the token.

In a test carried out on young Americans by Cint, a markets research firm, close to 70% of respondents in the survey are against cryptocurrencies in general. Almost 53% of the respondents do not want anything to do with the cryptocurrency mostly due to regulatory struggles and privacy control issues in the industry.

Regulators against Libra launch

Despite its homely welcome in neutral Switzerland, Libra is under fire across the European Union (EU) – Germany’s finance minister, Olaf Scholz is leading the pack. In an interview earlier in the month, Olaf urged the EU to regulate Libra and work towards launching their own stable coins or else they would lag behind other powerful states building their own digital assets.

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Author: Lujan Odera