VanEck SolidX Withdraws Bitcoin ETF – What Now?
After nearly two years of processing, Cboe BZX, the exchange responsible for VanEck SolidX’s ETF offering, withdrew the proposal. The move comes as something as a shock for those who had been expected a final ruling from the SEC next month.
What the withdrawal signifies is that the legal team behind the leading Bitcoin ETF proposal believed the SEC would turn it down. It is likely that the Cboe BZX team consulted with SEC lawyers and advisors before deciding to pull the plug on the ETF attempt.
However, fret not. This isn’t the first time the VanEck SolidX ETF has been pulled from contention. Earlier this year, the ETF was withdrawn amidst the US government shutdown. At the time, the Cboe BZX team cited concerns that the shutdown would negatively impact the ETF’s reception.
How Will the ETF Withdrawal Affect BTC?
The takeaway here is that while the withdrawal impacts the way Bitcoin’s immediate future looks, it isn’t the end of the world. There are several other ETF proposals under consideration by the ETF, including one put forward by Gemini Exchange’s Winklevoss twins.
The VanEck SolidX ETF has the most coverage for a few reasons.
- It was perceived as being the most qualified effort under review by the SEC.
- It had been under review for the longest amount of time.
What the SolidX proposal had that seemed like a positive move for appealing to regulators was a heavy reliance on custody. SEC regulators are concerned about investor security when it comes to considering a civilian investment vehicle for BTC like an ETF.
Should family funds be permitted to start buying into a Bitcoin ETF, what regulations are in place to prove the security of those funds? That is the question the SEC wants the answer to, and it appeared that the VanEck SolidX product had the answer.
Like Bakkt’s digital asset exchange and warehousing solution, it proposed an insured and regulated storage environment in which investor (and regulator) worries could be allayed.
The withdrawal of the VanEck SolidX ETF will likely have little to no impact on Bitcoin in the near term. The Cboe BZX team has already stated that it will continue creating an investment product for Bitcoin in the very near future.
More Bitcoin ETFs Than Meets the Eye
The VanEck SolidX BTC ETF isn’t the only game in town. Two other prominent BTC ETFs are on the verge of being ruled upon by the SEC.
Wilshire Phoenix and Bitwise Asset Management both filed ETF proposals earlier in the year, with the latter’s due for a ruling October 13. The proliferation of Bitcoin ETF proposals is great news for investors. It means that financial institutions are bullish about the future of cryptocurrency’s number one digital asset – so much so that they would stake their financial reputations on it.
In the meantime, Bitcoin investors and traders can look forward to the launch of Bakkt’s physically-settled BTC futures launch on September 23.