VanEck and SolidX withdraw proposal bitcoin ETF with SEC

Not good news about the long-awaited ETF from VanECK and SolidX. The exchange on which this ETF would be offered, Cboe BZX Exchange, announced yesterday that they had withdrawn the proposal.

Contents hide

1 Delay comes with a cancellation

2 Shares not a success yet

3 Two other ETFs

4 Related posts:

Delay comes with a cancellation

According to an official report (at the SEC) of 17 September, the proposal was actually withdrawn on 13 September. The SEC (Securities and Exchange Commission) has already postponed the decision to approve or reject the ETF proposal several times, which is also allowed. But there is an outer deadline by which the SEC must decide, and that was rapidly approaching. The deadline was already on October 18. A large part of the crypto community was looking forward to this because this could be the first time that a bitcoin ETF would be offered in the United States.

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The director of VanEck tweeted about this:

We are committed to support Bitcoin and Bitcoin-focused financial innovation. Bringing to market a physical, liquid and insured ETF remains a top priority. We continue to work closely with regulators & market participants to get one step closer every day. https://t.co/bDYiSbTRVl
– Gabor Gurbacs (@gaborgurbacs) September 17, 2019

Shares not a success yet

But what do you have to make of this? What is the reason they have withdrawn the ETF? That is still guesswork for now, but what we do know is that this news only comes a few weeks after VanEck and SolidX started offering shares. At least, these are shares of the VanEck SolidX Bitcoin Trust, which are only available to large institutional investors. This has not proved to be a great success for the time being, in the first three weeks only a value of 4 bitcoin was traded.

Incidentally, this is the second time that VanEck and SolidX have withdrawn a proposal for an ETF. They also withdrew the same proposal in January, but that was due to the government shutdown. At that time, government agencies were largely shut down because the fiscal year had ended and no new budget had yet been approved. The SEC was then one of those shut down government institutions.

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Two other ETFs

There are two other bitcoin ETF proposals on the shelf at the SEC. The one, filed by Wilshire Phoenix, would like to combine both bitcoin and US Treasury bonds. The next deadline is the end of September. The other proposal comes from Bitwise Asset Management, they want to offer the ETF via NYSE Arca, the SEC will decide on this on October 13.

The bitcoin rate has not yet responded to this news. The course has fallen slightly, but that is probably because there is a lot of trading for altcoins.