A publicly-traded Bitcoin ETF was on its way as the Chicago Board Options Exchange’s(CBOE) BZX Equity Exchange had already proposed for the approval from the SEC. However, yesterday things took a different turn as SEC published a notice in which it was mentioned the CBOE had withdrawn the application for the VanEck/SolidX Bitcoin ETF.
The firm had just started offering services to institutions for a limited Bitcoin ETF. The SEC had already delayed judgment on the matter, and it was given a final deadline of 18th October to finalize a decision on the future of Bitcoin ETF. Jan Van Eck had recently started offering a limited financial product which allowed exposure to Bitcoin.
This new product offered by VanEck Associates is a broker-traded fund which was not made available to the public, and the institutional investors used it. They further explained that they would trade over-the-counter and they won’t involve any national securities exchange. VanEck with the new trust issued only 4 Bitcoins making the total net assets of the VanEck SolidX Bitcoin Trust 144A were valued at $41,000.
Van Eck decided to withdraw the application from the SEC as they noticed that the only other application present there was from Bitwise and they believed that it’d be highly unlikely to see a ‘publicly-traded- Bitcoin ETF in 2019. The volatility and manipulation in the crypto markets along with the impact of an ETF on the retail investors is amongst the biggest concerns of the SEC.
VanEck took this decision presuming that the SEC is going to reject the proposal next month anyway since they see the future of a Bitcoin ETF is gloomy in the coming days. However, VanEck’s Digital Asset strategist and director, Gabor Gurbacs was still positive about the decision and said that they would continue to work in the direction of providing an insured ETF.
No hope for a Bitcoin ETF?
Gurbacs is pro-Bitcoin and believes that in future SEC will make the life of Bitcoiners a little easy by toning down a little with the regulations. This news can have a huge impact on the Bitcoin market as people were expecting the approval of ETF to bring a bullish trend.
With the future of Bitcoin ETF’s in the dark right now, we should not have high hopes for a Bitcoin ETF to roll out this year.
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