The Wall Street regulatory authority rejects the Bitcoin-based ETF from Vaneck

The US regulatory authorities rejected a top-class attempt on Friday to write down a Bitcoin-based stock exchange-traded funds on Wall Street, and represented the concern about the potential that fraud could achieve regulated exchanges.

The Securities and Exchange Commission rejected the application for Vaneck Bitcoin ETF out of concerns about "fraudulent and manipulative actions and practices" at the markets on which Bitcoin is traded. Her decision was based on the need to "protect investors and the public interest", added.

The SEC judgment dampens the hopes of crypto supporters who had campaigned with the regulatory authority to enable a trade covered with Bitcoin to trade on strictly regulated US markets. The agency has repeatedly rejected similar submissions in the past eight years, but in the past month the expectations were awakened when the SEC allowed the country's first ETFs based on Bitcoin Futures.

Canada and several European countries have approved spot cryptocurrency ETFs, whereby Vaneck is expected to launch the first such product in Australia shortly.

Speculation that the ETF could be approved contributed to pressing Bitcoin on Wednesday to a new high of $ 68,676, since the deadline for rejection by the Sec on Sunday came closer. Finally, he was traded at $ 63,168.

However, high-ranking SEC officials have previously expressed concerns about the trade conditions and the opportunity to manipulate the underlying cryptocurrency market. Digital tokens are traded on a variety of largely unregulated trading areas around the world.

"The SEC has been receiving many comments on Bitcoin ETFs for many years, but has a broader mandate. Investor protection in Kryptowelt has been busy lately," said Elisabeth Kashner, director of global fund analysis at Factset.

Last month, Gary Gensler, Chairman of the SEC, described the crypto finances as the "Wild West" and added that she was "full of fraud and abuse".

The US authorities have stated that the primary notification exchange for a Bitcoin ETF must have a comprehensive agreement with a large regulated market in terms of Bitcoin so that it can be monitored for potential manipulation or fraud. Van Eck planned to use CBOE Global Markets. "The listing exchange did not meet this requirement here," said the agency.

Jan van Eck, CEO von Vaneck, said: "We are obviously disappointed with the current update of the SEC that the approval of our physical Bitcoin ETFs is declining. We continue to believe that investors should have the opportunity to get involved in Bitcoin via a regulated investment product, and that an ETF structure without futures is the superior approach."

The ProShares Bitcoin Strategy ETF (Bito) based on Futures has had a fortune of 1.4 billion

The fund holds on -time contracts that are traded at a trading center of the CME Group, a stock exchange that is supervised by the Commodity Futures Trading Commission.

The Grayscale Bitcoin Trust, a private trust that holds physical bitcoins, has a market capitalization of $ 36 billion.