The SEC's rejection of VanEck's spot (exchange-traded funds) <a href="https://www.cryptoknowmics.com/news/report-10-5-billion-lost-to-theft-and-fraud-by-defi-users-in-2021-majority-on-ethereum/">ETF</a> triggered a Bitcoin price reversal as the regulator's stance on cryptocurrencies became clearer. According to TradingView statistics, Bitcoin (BTC) has been on an incredible price run since the US Securities and Exchange Commission approved ProShares' Bitcoin futures exchange-traded fund (ETF) early in October. This reached a new all-time high of over $69,000 on Nov. 10.

However, on Nov. 12, banking regulators sour the atmosphere by rejecting VanEck's application for a spot ETF and causing the flagship crypto currency's price to plummet to a 30-day low of $55,705 on November 19. The rejection of VanEck's ETF did not sit well with Jan van Eck, the company's CEO. 

https://twitter.com/JanvanEck3/status/1459207777239375878

"We feel that investors should be able to get #BTC exposure through a regulated fund, and a non-futures ETF structure is the best strategy," Van Eck tweeted, arguing that a spot ETF is the better option.
<h2>Futures are the Typically Riskier Product</h2>
 However, it's possible that by rejecting VanEck's spot ETF, financial regulators in the United States have released a riskier product on the same investors it's supposed to safeguard because it allows institutional Wall Street money to leverage Bitcoin's price swings. A futures contract binds the holder or buyer to acquire the underlying asset and the writer or seller to sell and deliver the item at a defined price on a specified future date unless the holder cancels their position before the expiration date.
<h2> Canada is a Supporter of ETFs That Trade</h2>
While the cryptocurrency world heralded the introduction of Bitcoin futures ETFs in the United States as a watershed moment for the asset class, the United States was not the first jurisdiction to offer crypto-related ETFs. For most of this year, Canada, the United States' friendly neighbor, has had Bitcoin ETFs trading on several markets. 

 In February of this year, the Purpose Bitcoin ETF, the first Bitcoin ETF in North America, was launched in Canada. Purpose Bitcoin ETFs and Evolve Bitcoin ETFs are now managing $1.4 billion and $203 million in assets, respectively.

 Following the success of its Bitcoin ETFs, the businesses behind these ETFs have gone on to produce Ether (ETH)-based ETFs. Legendary trader Peter Brandt took to Twitter to offer a fresh take on the subject, stating that BTC maximalists should oppose ETFs and avoid them entirely.

https://twitter.com/PeterLBrandt/status/1459576649981194243

It is debatable whether ETFs will support the long-term growth of Bitcoin as an asset in the way that they were intended. Still, it is undeniable that the development of crypto ETFs has a significant impact on market sentiments and, ultimately, the price of Bitcoin, which is at the heart of the discussion.

VanEck's Bitcoin Mark ETF Shunt Strengthens SEC's Outlook on Crypto

The SEC's rejection of VanEck's spot (exchange-traded funds) ETF triggered a Bitcoin price reversal as the regulator's stance on cryptocurrencies became clearer.

Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

VanEck's Bitcoin Mark ETF Shunt Strengthens SEC's Outlook on Crypto

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