Barely a month before the U.S. Securities and Exchange Commission’s (SEC) final decision on Cboe’s VanEck/SolidX Bitcoin (BTC) exchange-traded fund (ETF) application is due, an SEC filing published on Sep 17 revealed that the Cboe Global Markets Inc. BZX exchange had withdrawn its proposal to list and trade the Bitcoin derivative product.
An official notice published by the SEC shows that Cboe Global Markets Inc, without reason, withdrew their application on Sep 13. A week before the withdrawal Cboe was set to start offering VanEck SolidX Bitcoin Trust 144A Shares to some institutions with assets exceeding $100 million, under the provision of Rule 144A of the Securities Act 1933.
According to Jan Van Eck, CEO of the VanEck Associates investment management firm, the institutional-focused product is traded over-the-counter, and reserved for institutional investors, which means it is not supposed to be traded on any publicly regulated exchange. So far, VanEck Associates has sold just four shares worth over $41,000 to interested investors. The product follows the same “creation-and-redemption” process similar to traditional ETFs.
The SEC has postponed its decision on whether to approve or reject the Bitcoin product on a number of occasions. If the SEC would have approved the application withdrawn by Cboe, which was highly unlikely, then it would have become the first of its kind Bitcoin ETF for institutional trading in the US. On 9 of September, Jay Clayton, the chairman of the SEC said “progress is being made” but there was “work left to be done.”
Despite the decision, Gabor Gurbacs, director of digital-asset strategy at VanEck Associates, in a tweet, reassured the community that they are “working closely with regulators and market participants to get one step closer every day,” and that “it is not bad news but just a different process.”
“We are committed to supporting 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.”