The US SEC rejected the request from investment manager VanEck to release a spot Bitcoin ETF.
As per a report published by the government agency on Nov. 12, the paper submitted in March, by Cboe BZX Exchange and VanEck didn't provide sufficient details on how the product would prevent fraud and protect investors. The fund was supposed to track the BTC price directly.
Gary Gensler, the chairman of the SEC gives his preference to BTC futures ETFs. According to him, investing in futures contracts and not immediately into Bitcoin is a secure way for institutions to get exposure to crypto.
Last month, the first Bitcoin futures ETF got approved by the SEC. The product by ProShares debuted under the ticker BITO on October 18. Next, on Oct. 22, Valkyrie bitcoin ETF (also futures-based) entered the market. VanEck also got approval to release its Bitcoin derivatives exchange fund after Oct. 23. However, trading hasn't started yet.
Currently, Bitcoin trades at around $63.600 with a market cap of over $1.2 trillion.