VanEck, SolidX Pulls Out of Bitcoin ETF Race

Wilfred Michael 

Wilfred Michael

News reporter

17 September 2019,
23:37
VanEck, SolidX Pulls Out of Bitcoin ETF Race

A filing published by the U.S Securities and Exchanges Commission (SEC) today revealed that VanEck, SolidX, has withdrawn their request for a proposed rule change to list a Bitcoin exchange-traded fund (ETF) on Cboe Exchange.

Today’s update shows that the firms withdrew the request on September 13, even though we’re now less than one month away from the October 18 deadline on which the SEC was supposed to make a final decision regarding the application.

As DC-based lawyer Jake Chervinsky noted on Twitter, VanEck, SolidX initiated the withdrawal “presumably expecting that the SEC would reject it next month.” In other words, both firms prefer to pull out of the race rather than wait for an SEC denial of their request.

Another reason could be that less than a month VanEck, SolidX launched what they described as a limited Bitcoin-ETF product servicing institutional investors. Pulling out of the public traded Bitcoin ETF race understandably allows the firm to focus on scaling their new product while waiting for another appropriate time to apply.

Meanwhile, Bitwise Asset Management another asset manager in the race for a Bitcoin ETF to be listed to NYSE Arca has chosen not to take the same step as their rivals, with the SEC still on track to announce its final decision on October 13.

Will We See a Bitcoin ETF in 2019?

With the year almost running out and only less than a month left for the SEC to rule on what is arguably the last standing Bitcoin ETF proposal, hopes are gradually fading that we’ll see such a product go live in 2019.

Even though SEC Chairman, Jay Clayton said earlier this month that they are making progress in that direction, the official’s comment appears to have a more futuristic application especially in the light of the VanEck, SolidX withdrawal today.

 

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