Why is the SEC blocking the Spot Bitcoin ETF? Expert's response

In recent years, the Securities and Exchange Commission (SEC) has fiercely opposed the creation of a Spot Bitcoin ETF. Some exchange-traded fund (ETF) experts believe that this trend is not going to change anytime soon.

No chance of a Spot Bitcoin ETF emerging in the United States

The question of exchange-traded funds on Bitcoin is a sticking point that divides the SEC and the crypto industry. The regulator has been particularly unfavorable towards their creation. As a result, all attempts in this direction have simply been blocked by the SEC.

During the Bitcoin 2023 conference held last week, Jan van Eck was asked about the issue, specifically whether the regulators’ position could eventually change. His response was straightforward. “No chance!” he exclaimed.

If the CEO of the investment and asset management company VanEck’s response seems abrupt, it’s not without reason. So far, no company that has initiated such a procedure with the SEC has succeeded. 

🙅‍♂️ VanEck CEO says “no chance” on the future of a Spot Bitcoin ETF in the US.#CryptoNews #Stonkshttps://t.co/hPz1sQ44VC

— Cryptonews.com (@cryptonews) May 22, 2023

The most recent one, Grayscale, has even taken legal action against the regulator. The company argued that the SEC’s refusal is deeply discriminatory because the market manipulation risk associated with Spot Bitcoin ETFs, as mentioned by the SEC, is inconsistent. This is because other sectors with the same level of risk have been successful.

For now, the court has yet to settle the debate. However, Jan van Eck believes that even if Grayscale wins the lawsuit against the SEC, the crypto industry is not out of the woods. “Even if the SEC loses a Grayscale litigation, they’ll just drag their feet, appeal. So I just don’t see that in the next year and a half,” stated the executive.