No Bitcoin ETF in 2019 As VanEck Withdraws its Proposal in Fear of Rejection

  • Bringing to market a physical, liquid and insured ETF remains a top priority

Cboe withdrew its VanEck SolidX Bitcoin exchange-traded fund (ETF) proposal before its deadline next month.

According to a filing, dated Sept. 17, a proposed rule change to list and trade Bitcoin Shares issued by the VanEck SolidX Bitcoin Trust has been withdrawn on Sept. 13.

After several delayed decisions on the proposal, the US Securities and Exchange Commission (SEC) has to give its approval or rejection on the final deadline of Oct. 18.

Bringing a Physical, Liquid & Insured ETF Remains a Top Priority

What could have been the first Bitcoin ETF of US has been now withdrawn by the Cboe, VanEck, and SolidX in fear of rejection, according to Jake Chervinkcy, General Counsel at Compound Finance.

After the news broke out Gabor Gurbacks, the digital asset strategist at VanEck said they are committed to supporting Bitcoin and BTC-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,”

he added.

This was not the first time that VanEck and SolidX withdrew the proposed Bitcoin ETF. Back in January, after a prolonged government shutdown that threatened a forced rejection, they withdrew the same ETF proposal.

Meanwhile, ETF-like Bitcoin product a Miss

Just a few weeks earlier, VanEck launched “ETF like” Bitcoin Trust for qualified institutions, with at least $100 million in assets, under the Rule 144A of the Securities Act of 1933 where they can issue shares in this Trust.

Despite Ed Lopez, head of ETF product, VanEck saying that “there continues to be steady demand from institutional investors seeking access to a cleared product that offers the price return of Bitcoin,” its product failed to garner much attention.

In about three weeks since first announcing the product, it has traded only one “basket” of four Bitcoin, worth around $40,000.

All Eyes are on Bitwise Now

Currently, there are still two other Bitcoin proposal that SEC is reviewing.

Filed by Wilshire Phoenix, this proposal — that include both Bitcoin and US Treasury bonds in the Trust, faces its first deadline at the end of September.

The other one is filed by Bitwise Asset Management with NYSE Arca that has its final deadline on Oct. 13 that will decide its fate.

“Bitwise's proposal is still pending (for now) & due for a final decision on October 13. My best guess — there will be no bitcoin ETF in 2019,”

wrote Chervinsky.

Bitwise recently announced that BNY Mellon would serve as the administrator and transfer agent for its ETF.

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