Absent a regulated market, crypto ETF approvals unlikely (CQ Roll Call)

The SEC’s recent rejection of a spot bitcoin ETF based on its failure to meet investor protection obligations under Federal securities laws does not bode well for other similar ETFs seeking approval. The VanEck spot ETF would have traded within an unregulated cryptocurrency market that SEC Chair Gary Gensler has made clear lacks the same protections against fraud and manipulation as regulated markets. Unlike a bitcoin futures ETF that trades on commodity exchanges that are regulated, FrontLine’s Founder and President Amy Lynch explains that spot bitcoin ETFs would not be approved until a way is found to better regulate digital assets and have oversight of trading. See CQ Roll Call (subscription required), “SEC rejection of VanEck spot bitcoin fund casts doubt on similar proposals”