The VanEck and SolidX team withdrew their proposed Bitcoin ETF (exchange-traded fund) this Tuesday. The news surfaced accordingly after the SEC filing was issued.

According to the SEC filing which was issued on 17th September 2019, a rule change proposed that VanEckSolidX to publicly list their shares, which however was withdrawn on 13th September 2019. There was already a delay on the decision which is to be made about the proposal and the US SEC or Securities and Exchange Commission received a deadline i.e. on Oct 18th to decide if they are going to approve or reject the first Bitcoin ETF in the country.

The news then comes in the week VanEck/SolidX started offering trust shares to institutional buyers where these entities had an evaluation of $100 million in investments or assets owned, under an exemption rule of 144A. Within a span of three weeks since their announcement of the product, there was trading of a basket consisting of 4 BTCs which comes at around $40,000. However, VanECk has appeared to have changed the near-term plans recently.

Where are they heading towards?

In an interview conducted by CoinDesk, Ed Lopez, ETF product head at VanEck stated that they strongly affirm to better service if their product was regulated before going out in the market and that it is just a small step forward where the products can only be availed by institutions as of yet.

The investment firm and blockchain start-up firm VanEckalready had several delays and denials from the SEC. But now that they have pulled their proposal out, the firm will have the time to re-file, effectively resetting the clock.

In a Twitter post made by the digital asset strategies director of VanEck, Gabor Gurbacs has stated that they are committed to supporting Bitcoin-based innovations and Bitcoin itself. And that bringing a liquid and insured ETF to the market still remains as their top-most priority. He also further stated that they have continued to work very closely with the market participants and regulators to stay ahead.

Future Prospects of BTC ETF and SEC

The prospect of the Bitcoin ETF has also garnered an almost mythical status within the crypto industry. The product has widely been considered to be the driving force that can help Bitcoin scale newer heights. This will also allow retail investors to invest in Bitcoin without having to buy them directly while holding them in digitized wallets.

Previous Week, Jay Clayton who is the SEC chairman has reiterated the concerns that they had with a Bitcoin ETF product. While he still believed that there has been some progress which needs to be accounted for, there’s more work which is yet to be done.

SEC is also reviewing two other ETF proposals filed by Wilshire Phoenix and by Bitwise Asset Management. While the former includes U.S. Treasury bonds along with Bitcoin, the later has NYSE Arca. Bitwise also had announced recently that their transfer agent for ETFs would be BNY Mellon.

While the SEC is yet to be convinced about the Bitcoin safety, there’s still hope.

Aniket Srivastava

Aniket is a passionate follower of trending technologies. Whether the latest game on the market or a new gadget launch he is the go-to person. He drives his motivation from the fast-paced technological advancements. He ensures that the right news reaches niche audiences. He is a true believer of the Crypto and Blockchain world.
Aniket Srivastava