VanEck launches Bitcoin futures ETF, spot unlikely

Global investment manager VanEck officially launched its Bitcoin futures ETF on November 16. It bears the name “VanEck Bitcoin Strategy ETF” and will trade under the ticker XBTF and invest in BTC futures contracts.

However, VanEck’s application for a spot ETF that would trade BTC is unlikely.

A proposed rule change to allow a spot ETF to be denied

On November 12, the US Securities and Exchange Commission rejected the global investment manager’s request for a proposed rule change that would have paved the way for the VanEck Bitcoin Trust to list and trade.

The rejection alleged that the party requesting the rule change, Cboe BZX Exchange, Inc., “failed to meet its burden of … preventing fraudulent and manipulative acts and practices” and “protecting investors and the public interest”. The US securities supervisory authority is also concerned with possible “manipulative activities with the alleged ‘stablecoin’ tether”.

This comes as no surprise given that SEC chief Gary Gensler recently likened the digital currency industry to the Wild West and vowed to pinpoint it. Gensler made no secret of the fact that he believes much of the industry is fraudulent and needs to change.

The regulation elaborates on why the SEC rejected the proposed rule change and explains that an exchange can meet its obligations by having a “comprehensive surveillance agreement with a regulated market of significant size in relation to the has underlying Bitcoin assets or benchmarks of Bitcoin. ”

One bitcoin Anarchists worst nightmare

Monitoring? Regulation? Could it be that the very things that the Bitcoin anarchists vehemently oppose are the same things that are required to bring fresh money into the markets to keep the numbers up? It could be that the institutions are not coming precisely because the BTC industry is run by ideologues who refuse to adhere to basic controls to prevent crimes such as money laundering and terrorist financing, or who just want to avoid the necessary surveillance in order to manipulate further to be able to markets at will?

We now know that BTC serves no other purpose than to add to the wealth of existing owners by sucking up fresh fiat currencies from retailers and the always promised but never quite arriving institutional speculators. However, if this order is true then some big changes are needed before the fabled spot BTC ETF becomes a reality.

The order goes on to state that the surveillance sharing arrangements are necessary to “provide a necessary deterrent to tampering as they provide the information necessary to investigate such tampering, should it take place”.

It’s a catch 22. Allow regulators to collect the information likely or not to lead to the demise of systems like Tether and exposing the true levels of manipulation in the BTC markets and the much touted BTC spot ETF will never become a reality. Ouch!

Rules and regulations are necessary

We see once again clear evidence of what we promoted at CoinGeek from the start; Regulations and laws are not to be feared and avoided, but are necessary for the growth of the industry and the stability of the world as a whole.

The message that is heard again and again from the supervisory authorities is clear: as long as “crypto” has not grown up and abides by the rules, it will not be able to sit at the big boy’s table.

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