VanEck and SolidX Withdraw Bitcoin ETF Proposal at SEC

VanEck and SolidX have withdrawn their request to the SEC for a rule change that would have allowed the Cboe BZX Exchange to list retail shares issued by the VanEck SolidX Bitcoin Trust.

The application for the rule change was first filed January 30th of this year, and the decision was postponed twice by the SEC- first on March 19th and again on Sept 13th. A final deadline for the decision was set for October 18th.

VanEck, meanwhile, decided earlier this month to proceed to market with an offering of shares in a Bitcoin Trust to qualified institutional buyers possessing either a required certificate or residing outside the US:

“As the first bitcoin product in the U.S. with standard ETF creation and redemption and established clearing and settlement processes, institutional investors can finally gain exposure to Bitcoin within a familiar context.”

Initial demand for the VanEck’s institution-grade Bitcoin Trust shares has been slight, according to Decrypt:

“VanEck’s attempt to demonstrate demand for a Bitcoin ETF from institutional investors with a ‘limited Bitcoin ETF’ has fallen flat…Despite the investment management firm’s clever marketing when announcing the sale of its Bitcoin trust shares to ‘qualified institutional investors’ last week, VanEck’s total net assets for its ‘limited Bitcoin ETF’ sit at just over $40,000.”

Crypto markets have cooled considerably in the past two years, and in the release announcing its Bitcoin Trust product, Van Eck CEO Jan van Eck admitted that, under current circumstances, “Institutional demand for bitcoin exposure is uncertain.”

van Eck said regulatory drag has contributed to institutional reticence around crypto. “Institutional quality vehicles simply have not, to this point…been readily available.”

Bitcoin bull and crypto investor Tom Lee defended the VanEck SolidX Bitcoin Trust venture on Twitter, stating, “I think it’s too early to judge the success of the product.”

 


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