Bitcoin rallies after SEC invites further comment on VanEck ETF

September 21, 2018
Chris Wheal

The US Securities and Exchange Commission (SEC) has requested further comments regarding its decision on the listing of a bitcoin exchange-traded fund (ETF).

SEC invites additional comment from interested parties on VanEck ETF

In an official notice published on 20 September the regulator said it had not “reached any conclusions with respect to any of the issues involved” regarding the VanEck bitcoin-backed ETF request to be listed on Chicago’s BZX Equities Exchange.

Additional comments

The SEC said it was asking for additional comments from interested parties addressing the exchange’s statement in support of the listing – particularly on assertions that bitcoin is “less susceptible to manipulation than other commodities that underlie exchange-traded products”.

Indeed, the regulator has rejected a number of ETF proposals this year, including two from the Winklevoss Bitcoin Trust, due to the vulnerability of the underlying asset to fraud and manipulation.

It’s note on Thursday, however, added: “The Commission is instituting proceedings to allow for additional analysis of the proposed rule change’s consistency with Section 6(b)(5) of the [Securities] Act, which requires, among other things, that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade,’ and ‘to protect investors and the public interest’.”

Bitcoin rallies

While the “additional analysis” does not guarantee the SEC will rule in favour of the ETF’s listing in the future, bitcoin prices rallied on Friday following the announcement.

The biggest cryptocurrency by market capitalisation was up 5.1% in mid-morning trade in London at $6,731.

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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