VanEck and SolidX have withdrawn their bitcoin Exchange-Traded Fund (ETF) proposal, according to a September 17 filing to the Securities and Exchange Commission (SEC). This news comes weeks after reports that VanEck and SolidX have begun to offer the sale of privately placed securities to “qualified institutional buyers.”
Meanwhile, Bitwise Asset Management, which has filed a similar ETF application under NYSE Arca, is not discouraged by VanEck's withdrawal.
"Historically, getting approval for new and novel ETFs has been a multi-year process, so we're not surprised by the withdrawal," said Bitwise COO Teddy Fusaro. "At Bitwise we continue to work on our filing and through our research to answer all of the substantial questions that the SEC has raised over the years, and we intend to continue to highlight how the industry has made progress in being able to satisfy those hard questions."
Prior to the withdrawal, the SEC faced a final deadline to determine whether it was going to approve or reject the proposed bitcoin ETF on October 18. The deadline for SEC to decide on Bitwise's application is October 13.
The SEC had postponed making a decision on VanEck’s and Bitwise’s ETF applications several times, citing concerns regarding difficulties in price discovery and frauds in cryptocurrency trading. Earlier this month, SEC Chairman Jay Clayton said that "progress is being made" on the bitcoin ETF front but cites the lack of a proper crypto custody provider and the threat of price manipulation on unregulated exchanges as concerns the SEC still has.