SEC of United States Rejects VanEck Spot Bitcoin ETF Proposal

The SEC Chief, Gary Gensler, has expressed his support of Bitcoin Futures ETFs in the prepared remarks for The Future of Asset Management North America Conference. However, this outlook by the SEC has been frowned upon by the firms applying for spot ETFs due to the nature of the underlying contract in each of the two scenarios. 

“We see bitcoin futures-based funds as inferior products that have consistently underperformed the Bitcoin price and bring additional complexities in regards to how they must be managed, at a higher cost than ETFs. (..) What the SEC seems to be doing is pushing individual investors into higher-risk, lower quality products to get their Bitcoin exposure instead of sticking with the tried-and-true ETF wrapper,” said Matthew Sigel, head of digital assets research at VanEck, in an interview to Bloomberg.

The disapproval by the SEC led to souring the mood in the markets and leading BTC to below the $64,000 mark, under which it has been trading ever since. The flagship cryptocurrency currently trades at $63,524, with a market capitalization of $1.2 trillion, as per data from CoinMarketCap.

About VanEck

VanEck is an ETF and mutual fund manager that offers global investment choices to investors in asset classes like commodities, natural resources, equities, etc. The firm was launched by John van Eck in 1955 to bring global post-World War II investment opportunities to United States investors. The firm currently has 59 ETFs traded within the U.S. markets amounting to assets under management (AUM) of $64.70 billion, as per data from etf.com.

Find more about VanEck here:

Website | Twitter | Youtube | LinkedIn | Instagram | Facebook | Mail |

Source : solana.news

Leave a Reply

Your email address will not be published.