2021 has been one of the most interesting years for blockchain technology and cryptocurrencies, both in terms of adoption and mainstream acceptance. From governments such as El Salvador to large corporations like Tesla, Goldman Sachs, Bank of America and Morgan Stanley, many institutions have made a step toward becoming a part of the ecosystem.
Even so, there were a few issues and events that soured the mood for cryptocurrency investors and the community in general.
SEC’s rejection of VanEck’s spot Bitcoin ETF
Following the United States Security and Exchange Commission’s approval of ProShares’ Bitcoin (BTC) futures exchange-traded fund early in October, Bitcoin rallied to a new all-time high of $68,789.63 on Nov. 10, as per data from Cointelegraph Markets Pro. The ProShares Bitcoin Strategy ETF, which trades under the ticker BITO, had the biggest ever first day of any ETF in terms of natural volume, indicating how highly awaited the launch of a BTC ETF was.
Soon after, on Nov. 12, the financial regulator spoiled the party by rejecting Van Eck’s proposal for a spot Bitcoin ETF, which led the price of the flagship cryptocurrency to start its downward spiral journey.
Jan van Eck, CEO of VanEck, wasn’t pleased with the rejection.
We are disappointed in today’s update from the SEC declining approval of our physical bitcoin ETF. We believe that investors should be able to gain #BTC exposure through a regulated fund and that a non-futures ETF structure is the superior approach. @tyler @gaborgurbacs
— Jan van Eck (@JanvanEck3) November 12, 2021
The bid to get approval from the SEC for a spot ETF has been going on for more than eight years, since July 2013 when Cameron and Tyler Winklevoss tried to launch the “Winklevoss Bitcoin Trust.” Even though such a long time has passed and the narrative around cryptocurrencies has changed, Gary Gensler’s SEC has not yet approved a spot ETF for Bitcoin.
Related: VanEck’s Bitcoin spot ETF shunt solidifies SEC’s outlook on crypto
Eric Balchunas, senior ETF analyst at Bloomberg, opined on the SEC’s rejection. Balchunas has been vocal about the SEC’s…