CBOE Withdrawals Van Eck Solid Bitcoin ETF Proposal From SEC Assessment

September 20, 2019 / by Crypto.IQ

The Chicago Board Options Exchange’s BZX Equity exchange has decided to withdraw its proposal before the SEC. It seems like the Van Eck Bitcoin ETF will now never appears.

In a notice published on September 17th, the SEC indicated that CBOE had withdrawn the VanEck/SolidX Bitcoin ETF on September 13th. There was no reason given regarding the decision to withdraw the proposal. The move comes weeks after the company started offering a limited Bitcoin ETF for various institutions.

The fund has in the past been withdrawn temporarily followed by a later re-filing. But it seems less likely that the SEC will approve the fund. The SEC delayed the decisions on the issue, but the deadline was on October 18th when it was to approve or reject the ETF.  

This is the second withdrawal after the company withdrew a similar proposal at the beginning of the year. There was a concern then that the protracted government shutdown would have led to a rejection. 

Now the firm has created another investment vehicle to offer private clients BTC exposure.

The newly created trust targeted institutional investors offering XBTCZ shares, but it didn’t pick up. By September 17th it has about 4 BTC worth of funds under management which implies that it only sold a single investment lot. Usually, even the smallest exchanges trade more than 4 BTC in a day. With the project failing to pick up the only hope now is the Bakkt BTC futures expected to launch soon.

Alternatively, Investors can invest directly in BTC without purchasing digital assets through Grayscale Capital funds.  The funds have the backing of BTC and a couple of digital coins. They are equally available for retail investors. European investors have had potential exposure to BTC and ETH prices for years vial the funds of XBT Provider.

Van Eck committed to supporting Bitcoin innovations

Van Eck’s digital assets strategies director, Gabor Gurbacs indicated that despite the withdrawal they are dedicated to supporting Bitcoin innovation. He added that the firm’s priority is to bring a physical, liquid, and insured ETF. He said that they would continue working closely with regulators and market players to move closer each day.

The SEC is also reviewing two more Bitcoin ETF proposals. One filed by Wilshire Phoenix could comprise Bitcoin and US treasury bonds in the trust, and it has up to the end of September. The other filed by Bitwise Assets Management with NYSE Arca awaits approval or rejection on October 13th. Recently Bitwise announced that BNY Mellon would be the transfer agent for its ETF. 

The launch of an ETF is not considered as critical for BTC price action and adoption as it was last year. Demand and trading have moved to Asian exchanges, and there are also sufficient retail opportunities to consider for direct investment in BTC.