The United States Securities and Exchange Commission (SEC) has acknowledged VanEck’s bitcoin exchange-traded fund (ETF) application.
This has started the 45-day countdown for a response to the bitcoin ETF application. Before the end of this period, the SEC has to either approve, deny, or extend the review period. Extensions can be as long as 240 days.
VanEck filed for the ETF earlier this year. The Chicago Board Options Exchange (CBOE) shortly followed, applying for approval to host VanEck’s fund. It published its completed 19-b form application on March 1.
Should the SEC approve the application, it would make this the first ETF approved in the United States.
VanEck has been pushing hard to get this approval through. For years the investment company has filed and retracted multiple applications with little success.
A History of Bitcoin ETF Rejections
The SEC has yet to approve a single bitcoin ETF application. A host of companies have tried and failed to have their ETF approved.
The SEC has also been clear about its concerns. Many of the rejections cite a lack of local bitcoin trading volume and manipulation concerns. The Commission is especially concerned that those applying have not demonstrated that exchanges can prevent fraud and manipulation practices.
The companies are pushing this agenda because they believe that ETFs are the new futures, with institutions especially interested in this kind of investment.
Institutional investment directly in bitcoin is already on the rise, with multiple investment firms buying up coins.
Canadian ETF Approval a Hopeful Signal
Canada has already beat the United States out in becoming the first country in North America to approve an ETF. It is also the world’s first approved bitcoin ETF.
The Purpose bitcoin ETF was approved in February 2021. Just nine days after its launch it amassed 10,064 BTC. Currently, it holds 13,783 BTC.
This move and its subsequent success sparked hope that the SEC will be encouraged by this vote of approval from its northern neighbor.