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A Wall Street administrator denies VanEck’s bitcoin-backed ETF

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US authorities on Friday rejected a high-profile attempt to write a bitcoin-based exchange trading fund on Wall Street, citing concerns over the possibility that fraud in the crypto market would come to a legal exchange.

The Securities and Exchange Commission has rejected the use of VanEck Bitcoin ETF over concerns about “fraudulent and fraudulent transactions” in the markets where bitcoin trades. His idea was based on the need to “protect investors and the interests of the people”, it added.

Some of the negatives that the SEC raised in the non-compliant system included the possible “clean-up”, where the same agency is on both sides of the trade, making extra money due to lower risk; possible price changes by whales who control bitcoin; and possible “fraudulent activities associated with ‘Stablecoin’ Tether notes”.

The SEC decision undermines the hopes of crypto representatives who have been pressuring the regulator to allow the bitcoin-funded wallet to sell on stable US markets. The commission has repeatedly rejected correspondence over the past eight years but expectations were raised last month when the SEC approved the country’s first bitcoin ETFs.

Canada and several European countries have ratified the cryptocurrency ETFs, with VanEck expected to launch the first product in Australia soon.

The speculation that the ETF could be approved helped push bitcoin to a new high of $ 68,676 on Wednesday, as the SEC’s final day of rejection approaches Sunday. It last sold for $ 63,168.

However, SEC officials have already commented on trade concerns and the potential for disruption of the cryptocurrency market. Digital tokens are sold in various underdeveloped locations around the world.

“The SEC has received a lot of comments over the years on Bitcoin ETFs but it has a big responsibility. Investor’s protection in the crypto world has been on their minds lately,” said Elisabeth Kashner, chief financial analyst at FactSet.

As recently as last month Gary Gensler, chairman of the SEC, described the crypto currency as “Wild West, adding that it” contains fraud, deception and cruelty “.

US officials say the initial interest rate for the bitcoin ETF should be fully aligned with the larger bitcoin market in order to monitor fraud or fraud. Van Eck developed the use of CBOE Global Markets. “The exchange list did not meet the requirements here,” the agency said.

Jan van Eck, VanEck’s chief executive officer, said: “We are disappointed with the current changes from the SEC to rejecting our bitcoin ETF. the best way. “

The proShares Bitcoin Strategy ETF (BITO) futures earning $ 1.4bn since launching one of the most powerful ETFs in history last month, highlighting interest in cryptocurrency trading.

The fund has futures contractors that sell the CME Group property, an exchange managed by the Commodity Futures Trading Commission.

The Grayscale Bitcoin Trust, a private trust that holds physical bitcoin, has a market share of $ 36bn.

Todd Rosenbluth, head of the ETF and mutual fund research officer at CFRA Research, said: “The SEC has consistently believed that the Bitcoin ETF would not protect money from fraud or bribery. although available in some markets.

“In the meantime, ETF investors need to approve future US products such as BITOs or ETFs that provide access to blockchain and crypto-related companies.”

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