Leading asset manager VanEck has made changes to its proposed spot bitcoinETF (exchange-traded fund) to allay concerns raised by the U.S. Securities and Exchange Commission (SEC). Company executives stressed the need for regulators to treat all such applications equally.
A recent filing by bitcoin ETF exchange Cboe reveals that the company expects to enter into a surveillance sharing agreement with a US bitcoin spot trading platform operator. The move is aimed at addressing the SEC’s concerns about surveillance and manipulation of the bitcoin market.
The proposed spot bitcoin ETF has drawn a lot of attention from the industry after renowned asset management giant BlackRock announced plans to launch a similar product. Several other companies, including Bitwise, WisdomTree, Invesco and Valkyrie, have previously attempted to bring such products to market.
VanEck’s revised proposal is intended to address the SEC’s concerns about investor protection, market manipulation and surveillance. The firm is committed to working closely with regulators to ensure that the proposed ETF has a robust and safe framework.
The revised document includes enhanced market regulation such as real-time monitoring and data sharing with trading platform operators. These measures are designed to detect and prevent any potential market manipulation, providing investors with greater confidence and transparency.
The regulatory environment surrounding cryptocurrency-based investment products remains under intense scrutiny. As demand for digital assets continues to grow, regulators struggle to strike a balance between investor protection and fostering innovation in emerging markets.
The SEC has been expressing concern about potential risks associated with bitcoin ETFs, focusing on issues related to market manipulation, liquidity, and custody of the underlying assets. The agency emphasized the need for robust market surveillance mechanisms to adequately address these issues.
While VanEck’s revised proposal takes significant steps to address the SEC’s concerns, the regulatory approval process is still ongoing. The firm hopes these amendments will facilitate constructive dialogue with the SEC and pave the way for the introduction of regulated and easy-to-use bitcoin investment vehicles.