Bitcoin price slips below $63K as SEC rejects VanEck’s spot BTC ETF

The spot Bitcoin exchange-traded fund (ETF) by the asset manager VanEck has been officially disapproved by the United States Securities and Exchange Commission (SEC). The firm had submitted the application months ago.

As per the November 12 filing, the SEC did not approve the proposed change in rules from the Cboe BZX Exchange for listing and trading VanEck’s Bitcoin Trust’s shares. In addition, the SEC specifically stated:

“The Commission concludes that BZX has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of the Exchange Act Section.”

The regulatory body further added that any exchange listing a derivative securities product must agree with the surveillance-sharing agreement with the markets that are trading the underlying assets. This gives it the ability to obtain data necessary to detect, investigate, and find any fraudulent activity and market manipulation. SEC further added that doing this would also help the regulatory authority keep an eye on the proper following of federal securities rules and regulations.

Bitcoin price reacted to the news

The effect of the news impacted the BTC price as the king coin slipped down to $62,300 within minutes. However, it came back above the $63,000 support level. As TheCoinRise reported, the coin has recently achieved a fresh all-time high at $69,000. Interestingly, Bitcoin bulls are eyeing at $70,000 levels now.

The company registered the application on March 19. As per the rule, SEC had at most 240 days to approve or reject the offering. This marked a deadline of November 14 for the regulatory authority to make a decision. Eric Balchunas, the senior ETF analyst, said that it was highly unlikely for SEC to approve VanEck’s ETF as it has denied offerings from crypto-related investment firms in the past affecting its reputation.