The quest for a Bitcoin ETF dealt a blow as VanEck withdraws proposal

 

• The VanEck Bitcoin proposal was up for the finals decision by the US SEC on October 13.

• Two more Bitcoin ETFs are still up for review filed by Wilshire Phoenix and Bitwise Asset Management.

The journey to having the first Bitcoin exchange-traded fund (ETF) will continue despite Cboe BZX Exchange recalled its VanEck/SolidX BTC ETF proposal. A filing made on September 17 came after a proposed rule alteration to publicly listed shares of the VanECK/SolidX was removed on September 13.

The United States Securities and Exchange Commission (SEC) was gearing up for the final decision on the proposal on October 18. This final decision was to come after a series of delays by the regulator. According to a report by CoinDesk:

“The news comes just weeks after VanEck and SolidX began offering shares of the Trust to qualified institutional buyers (entities with at least $100 million in assets owned or invested) under a Rule 144A exemption. In the nearly three weeks since first announcing the product, one “basket” of four bitcoin (worth around $40,000) was traded.”

Despite the setback, VanECK is not letting go of the goal to bring an exchange-traded product into the market. In an interview with CoinDesk on September 4, the head of ETF product Ed Lopez said such a regulated product will be beneficial to investors.

The SEC still has two more Bitcoin ETF proposals to review. The Wilshire Phoenix proposes the inclusion of Bitcoin and the US Treasury bonds. The SEC will provide an initial deadline ruling at the end of September. The second proposal by Bitwise Asset Management in collaboration with NYSE Arca will know its fate on October 13.

 

John Isige

FXStreet

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