According to an official document published by the SEC (Securities and Exchange Commission), the two companies specialising in blockchain investment funds and technology, VanEck and SolidX, have withdrawn their proposal for a Bitcoin ETF (Exchange Traded Fund).
Thanks to the 144A rule, VanEck and SolidX are still able to sell shares (in a reduced version) of their ETFs even without the approval of the SEC. This choice drastically limits the scope of action of the two companies, which will not be able to interact with retail investors but only with institutional ones (investments starting from 100 million dollars).
The deadline for the SEC to decide whether to approve or reject proposals for a Bitcoin ETF from VanEck and SolidX was October 18th, which was the date for the US body to make a decision with no further delay.
In the past, there have never been approvals, but instead, Bitcoin ETFs have been denied to ProShares, Direxion and GraniteShares. It’s not even the first time that VanEck and SolidX have withdrawn their proposal: in January 2019 they decided to take a step back after the SEC’s repeated delays in taking a decision, while on February 20, after reviewing their product, they decided to try again, although without any success.
There are still several documents in the hands of the US body: the proposal of an ETF by Wilshire Phoenix has as its deadline the end of September 2019 and the one presented by BitWise will receive a ruling by October 13th, 2019.
For some time now, the SEC’s approval of a Bitcoin ETF has been one of those events that the entire crypto community hopes will happen, since the introduction of a product of this kind will certainly bring cryptocurrency to the mainstream, ensuring the entry into this market to many institutional and retail investors alike.