Bitcoin enthusiasts who had high hopes for the VanEck – SolidX ETF will be sorely disappointed. After careful review -and probably knowing all too well there would be no approval – the team has decided to withdraw its proposal altogether. This is the second Bitcoin ETF to be withdrawn this month. About a week ago, CBOE took a similar course of action.
VanEck – SolidX Withdraws
It was a matter of time until the VanEck – SolidX Bitcoin ETF application was either rejected or withdrawn. Over the past few years, there has been no indication the SEC has any plans to approve such investment vehicles. Especially given the lack of Bitcoin regulation across the US, such an ETF cannot be launched. There is also the ongoing market volatility which poses its own set of problems.
By actively withdrawing the proposal, both companies have confirmed people’s expectations. There cannot be a Bitcoin ETF under the current regulatory ecosystem. There is also very little progress being made on this front over the past few years. Although the SolidX – VanEck proposal would be reviewed in a month from today, withdrawing it appears to be the smarter option altogether. It is unfortunate, but no one should be too surprised by this decision either.
Following CBOE’s Approach
It is not the first time this month a Bitcoin ETF proposal has been withdrawn. CBOE, a company currently providing exposure to Bitcoin futures across the United States also had plans to launch an ETF tied to the world’s leading cryptocurrency. However, the company has withdrawn this application on September 13. While an exact reason was not cited at the time of writing, it goes to show there is a lot of regulatory red tape companies need to circumvent. That is much easier said than done, however.
With two major companies pulling their proposals in the span of just five days, one has to wonder if there is any future ahead for Bitcoin ETFs. Based on the current landscape, it seems unlikely such a trading vehicle will ever see the light of day. Moreover, one has to wonder if there is even any real interest in such an ETF, or how it would affect Bitcoin’s price. More volatility isn’t necessarily a good thing, as it would only reinforce Bitcoin’s position as a speculative vehicle first and foremost.
Bitcoin Support Won’t end
One silver lining in all of this is how all companies involved will continue to push the boundaries of Bitcoin services. For VanEck, there is still a strong focus on getting a Bitcoin ETF approved in the future. However, they will need regulators to step up their game accordingly. As long as the laissez-faire situation remains in place, there can’t be any progress whatsoever.