SEC delays decision on VanEck spot Bitcoin ETF

The U.S. Securities and Exchange Commission (SEC) delayed the deadline for deciding on VanEck’s application to launch a spot Bitcoin ETF.

Initially, the regulator was due to complete its review on August 27. According to the document, the new date is October 11. The SEC noted that it had not received public comments on the application from the company.

“The Commission believes it is prudent to designate a longer period to take action on the proposed rule change so that it has enough time to consider the issues raised,” the order states.

On June 24, VanEck filed documents for the launch of a spot Bitcoin ETF. The previous filing with the SEC rejected in November 2021.

The firm argued that a positive verdict by the regulator would be logical after the approval of a futures-based Bitcoin ETF. Such an instrument from VanEck was approved in October 2021. It became the third to be listed in the US after products from ProShares and Valkyrie Investments, which received listings in the United States.

In October 2021, Grayscale Investments filed an application to convert its digital-gold trust into a spot Bitcoin ETF.

On December 17, the SEC delayed decision on the application, and in February 2022 the regulator took this step again. On June 30, Grayscale filed a lawsuit against the regulator after its filing was finally denied.

Earlier the company said that the SEC’s readiness to approve a futures-based Bitcoin ETF while rejecting applications for its spot variant could violate the Administrative Procedure Act.

According to Grayscale’s Chief Legal Officer Craig Salama, the litigation against the Commission could take one to two years. The company regards the regulator’s stance as “unfair discrimination”.

The Wall Street Journal’s editorial board accused SEC Chair Gary Gensler of a “confusing” approach to approving the spot Bitcoin ETF.

Earlier Bloomberg analysts forecast that the regulator would approve such instruments by mid-2023. According to Eric Balchunas’s calculations, 95% of those who commented on Grayscale’s filing backed the launch of the instrument.

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