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The VanEck investment firm and blockchain startup SolidX have faced numerous denials and delays from the SEC in its attempt to publicly list shares of its Bitcoin Trust. Its latest proposal was headed for a final deadline of October 18—and, in all likelihood, yet another denial.
But by pulling its proposal now, VanEck and SolidX are able to re-file their proposal at a later date and, in effect, reset the clock.
“We are committed to support Bitcoin and Bitcoin-focused financial innovation. Bringing to market a physical, liquid and insured ETF remains a top priority,” Gabor Gurbacs, VanEck director of digital asset strategies, said in a post on Twitter. “We continue to work closely with regulators [and] market participants to get one step closer every day.”
The prospect of a Bitcoin ETF has reached almost mythical status within the cryptocurrency industry. The investment product is widely considered to be the vehicle which will drive Bitcoin to new heights, allowing retail investors to buy into Bitcoin without fussing over purchasing actual bitcoins and holding them in digital wallets.
VanEck’s decision to pull the plug now follows a failed attempt to push a “limited Bitcoin ETF” product to “qualified institutional investors” earlier this month. Two weeks later, the pseudo-ETF has yet to generate more than a single basket of 4 BTC, worth approximately $40,000.
Last week, SEC Chairman Jay Clayton reiterated the Commission’s long-standing concerns with a Bitcoin ETF in an interview with CNBC. While Clayton said he believed some progress had been made, “there’s work left to be done,” he said.
In other words, the SEC still isn’t satisfied that the volatile price of Bitcoin is safely free of manipulation on crypto exchanges. That wasn’t going to change by October 18.
In fact, there’s very little, if anything, to suggest that it will ever change at all.