US fund management giant Van Eck is trying its luck again with another application in the US for a bitcoin trust.
A previous application was turned down eight months ago by the US SEC on the grounds that was a risk of market manipulation.
Other fund groups also had their applications rejected for similar reasons, though has approved a raft of funds based on bitcoin derivatives/futures.
“Spot commodities and currency markets for which it has previously approved spot ETPs are generally unregulated and that the Commission relied on underlying futures market as the regulated market of significant size that formed the basis for approving the series of Currency and Commodity-Based Trust Shares, including gold, silver, platinum, palladium, copper, and other commodities and currencies,” VanEck noted in its filing.
Arguments in favour of a bitcoin-backed ETF are that it would provide a low-cost and easily accessible way for individuals and institutions to invest in bitcoin.