The cryptocurrency industry has seen an uphill battle in the last few years to get approval for a bitcoin exchange-traded fund from the Securities and Exchange Commission in the United States. This has seen several firms apply for an ETF and many being denied as well as several delays on decision making by the SEC themselves and this has created an era frustration in which many are confused as to whether or not an ETF will ever be approved for the crypto industry.
Unfortunately, there seems to have been another snag in the road as it was reported that the Chicago Board Options Exchange’s (CBOE) BZX Equity Exchange has withdrawn their request to the Securities and Exchange Commission for a VanEck/SolidX bitcoin exchange-traded fund which again makes another incidence of a company pursuing a bitcoin ETF and not being successful.
While the announcement of the withdrawal was made on September 17, 2019, by the SEC website, the actual withdrawal took place on September 13, 2019, which is just weeks to when the firm intends to offer limited bitcoin ETFs to investors. So far, no reason has been given for the withdrawal and this has caused some amount of speculation.
Previously, the SEC had already delayed a decision on the bitcoin ETF and was facing a deadline of October 18, 2019, to finally give word on whether or not the ETF would be going through or not. Despite the withdrawal of the application, the firm seems to be optimistic about the future.
“We are committed to support Bitcoin and Bitcoin-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,” said VanEck’s director of digital asset strategies Gabor Gurbacs.
In the meantime, the company has announced that they will be offering as security with some exposure to bitcoin but not to the general public and only to institutional investors and it will not have any links to any national securities exchange. This product could be a chance to test the waters on investors attitude towards a bitcoin fund and possibly when one is approved by the SEC, firms lot like VanEck and others will be prepared.