The United States Securities and Commutation Commission, or SEC, has officially disapproved asset manager VanEck's spot Bitcoin exchange-traded fund months later the firm submitted its application.

According to a Fri filing, the SEC rejected a proposed rule change from the Cboe BZX Exchange to list and trade shares of VanEck'due south Bitcoin (BTC) Trust. Specifically, the SEC said any rule change in favor of approving the ETF would not be "'designed to foreclose fraudulent and manipulative acts and practices" nor "protect investors and the public interest."

"The Commission concludes that BZX has not met its burden nether the Substitution Act and the Commission's Rules of Practice to demonstrate that its proposal is consistent with the requirements of Exchange Act Section," said the SEC, adding:

"It is essential for an substitution listing a derivative securities product to enter into a surveillance-sharing understanding with markets trading the underlying avails for the listing commutation to take the ability to obtain data necessary to detect, investigate, and deter fraud and market manipulation, as well as violations of substitution rules and applicable federal securities laws and rules."

The regulatory body had a maximum of 240 days to approve or deny the offering following its publication in the Federal Annals on March 19, giving the SEC until Nov. 14 to make a conclusion after extensions on April 28 and Sept. viii. Industry expert Bloomberg senior ETF annotator Eric Balchunas said the SEC was highly unlikely to corroborate the VanEck fund given its track tape of denying offerings from investment firms with exposure to crypto, a prediction which ultimately came to laissez passer.

"[The SEC] address the inconsistency with not deeming CME a regulated mkt of sig size in spot denial but then approving futures ETFs," said Balchunas. "It's such a adept signal, but SEC doesn't care. Not having it. Basically logic and reason are trumped by technical legality."

Though the rejection may be a blow to many investors, the SEC has already approved ETFs linked to Bitcoin futures contracts. In October, shares of digital asset manager Valkyrie'south and ProShares' BTC Strategy ETF launched on U.S. stock exchanges. ProShares' ETF has since risen to the height 2% of all ETFs in terms of total trading volume — roughly $400 one thousand thousand worth of shares traded on Nov. 10.

Related: Study suggests BlackRock has 'no current plans' to launch crypto ETF every bit deadline for VanEck's offer approaches

The impact on the price of Bitcoin saw the crypto asset briefly dip to $62,300 earlier returning to more than than $63,000. The price marks a 9.seven% autumn since Bitcoin reached a new all-fourth dimension high of $69,000 on Nov. 10.