Mar 11, 2023
SEC Denies VanEck’s Spot Bitcoin Trust Application
On March 10, the United States Securities and Exchange Commission (SEC) denied a request from investment manager VanEck to create a spot Bitcoin (BTC) trust. SEC Commissioners Mark Uyeda and Hester Peirce released a joint statement in response to the SEC’s decision, noting that the agency had denied nearly 20 similar applications over the last six years.
The commissioners argued that the SEC had applied a uniquely burdensome definition of “significant” to spot Bitcoin exchange-traded products (ETPs). They noted that the agency had not required any connection between the spot and futures markets to be demonstrated for other commodity-based ETPs and that “significant” was applied to the liquidity and volume of the trading venue in cases that did not involve Bitcoin. The SEC is required by law to explain changes to its policy for approving commodity-based ETPs, they added.
VanEck has a Bitcoin futures-linked financial product and began its attempts to gain approval for a spot-linked product in 2017. The SEC delayed making a decision on the company’s third application for a spot ETP for months. In response, Commissioner Uyeda released a statement in February on the SEC’s proposed toughening of custody rules, noting that “This approach to custody appears to mask a policy decision to block access to crypto as an asset class.”
The SEC’s decision to deny VanEck’s spot Bitcoin trust application has ignited a debate in the crypto and web3 space about the potential for NFTs (non-fungible tokens) to fill the gap. NFTs are digital assets stored on a blockchain that are unique and can be used to represent ownership of digital art, gaming assets, and more.
NFTs have been gaining traction in recent months, with the sale of digital artworks setting records and the launch of NFT-based gaming platforms. This has led to a surge in demand for NFT marketing and promotion services, with many web3 agencies now offering their services to those looking to sell NFTs.
One of the most popular ways to promote and market NFTs is through Twitter, with many web3 agencies now offering services specifically tailored to NFTs. These services include creating and managing Twitter campaigns, providing analytics and insights, and helping to create and manage NFT promotions.
The SEC’s decision to deny VanEck’s spot Bitcoin trust application has sparked a debate in the web3 space about the potential for NFTs to fill the gap. With the demand for NFTs growing, many web3 agencies are now offering services tailored to those looking to sell NFTs. Twitter is one of the most popular platforms for promoting and marketing NFTs, with many web3 agencies now offering services specifically tailored to NFTs. As the crypto space continues to evolve, it will be interesting to see how NFTs continue to shape the web3 landscape.
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