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United States SEC denies VanEck’s rule change to create Bitcoin Trust

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It is reported that the United States Securities and Exchange Commission (SEC) on March 10 ordered against a rule change that allowed the investment company Van

United States SEC denies VanEck’s rule change to create Bitcoin Trust

It is reported that the United States Securities and Exchange Commission (SEC) on March 10 ordered against a rule change that allowed the investment company VanEck to create a spot Bitcoin trust. The committee members Mark Uyeda and Hester Peirce issued a statement that the SEC has rejected all the submitted applications for BTC trust, which has reached nearly 20 in the past six years. They said that the SEC’s review of ETP applicants was “double standard”. “In our view, the standards used by the Commission for other types of commodity-based ETPs are different from those used in the past and now, so as to keep these spot Bitcoin ETPs away from the exchanges we supervise.

US SEC rejects VanEck’s spot BTC trust application

Analysis based on this information:


The United States Securities and Exchange Commission (SEC) has made a decision to reject the proposal of VanEck, an investment company, to create a spot Bitcoin trust. This news was reported on March 10, and it came as no surprise to the cryptocurrency community, as the SEC has been rejecting all Bitcoin Trust applications for the past six years, which has amounted to nearly 20 applications. The committee members, Mark Uyeda and Hester Peirce, spoke out against the SEC’s decision, stating that the regulatory body is practicing a double standard when it comes to commodity-based Exchange-Traded Products (ETPs).

For those unfamiliar, a Bitcoin Trust is essentially a fund that is comprised of Bitcoin that investors can buy a share in without actually owning the asset. VanEck’s proposal would have allowed for the creation of a spot Bitcoin Trust, which would be directly linked to the current price of Bitcoin. However, the SEC did not see fit to approve the proposal, despite the fact that they have approved similar proposals for other commodity-based ETPs.

Mark Uyeda and Hester Peirce believe that this is a “double standard” on the part of the SEC, as they are using different standards for Bitcoin ETPs in order to prevent them from being listed on the exchanges under their jurisdiction. They point out that there is no substantive reason why Bitcoin-based funds should be treated differently from other commodity-based funds.

While this news is a setback for VanEck and its investors, it is unlikely to have a significant impact on the Bitcoin market as a whole. Bitcoin continues to grow in popularity and has been adopted by many major companies and institutions. The rejection of VanEck’s proposal is simply an indication that the SEC is not yet ready to fully embrace Bitcoin as a legitimate commodity, but this could change in the future.

In conclusion, the SEC’s rejection of VanEck’s proposal for a spot Bitcoin Trust highlights the double standard and inconsistency in the regulatory body’s approach to commodity-based ETPs. The decision is unlikely to significantly impact the Bitcoin market, but it is indicative of the challenges that cryptocurrencies face in gaining mainstream acceptance.

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