The VanEck/SolidX partnership was expected to become Bakkt’s competitor in the race for a BTC ETF. The SEC application for their product has now been withdrawn.
CBOE withdraws approval request without explanation
Many signs pointed to a head-to-head race between VanEck and Bakkt to launch Bitcoin futures products. While Bakkt has since released additional details confirming a product launch slated for September, VanEck’s plans have been notably quiet. Their joint offering with SolidX was also expected to become tradable this month. Now it has emerged that the application for the VanEck/SolidX Bitcoin ETF will not be decided on for the time being. The reason: the application has simply not been maintained. According to reports, the formal notice withdrawing the application was submitted to the responsible U.S. securities regulator, the SEC, and its review division on September 13.
The back-and-forth comes to a pause
The BZX Equity Exchange announced the withdrawal. The BZX is part of CBOE — the Chicago Board Options Exchange. This development is especially disappointing for investors who have grown interested in BTC ETFs following the recent wave of institutional offerings. In its statement, the CBOE left open, at least for now, why the VanEck/SolidX Bitcoin Exchange Traded Fund application will not be pursued further. Neither VanEck nor SolidX has provided detailed information. One potential explanation is the repeated postponement of the SEC’s decision on the approval request. For about six months, providers and interested parties have been awaiting a clear ruling from the regulator.
Bakkt takes the lead for now
The withdrawal is surprising, especially since a clear resolution was expected in about one month. With the application withdrawn, an SEC review is no longer necessary. The consequences of the withdrawal remain uncertain. According to a high-level tweet, ETFs tied to Bitcoin remain an important, prioritized topic for regulators and market participants. Authorities and industry players continue to work toward a regulatory solution. In the meantime, Bakkt is likely to have won many customers. Retail investors may need to remain patient due to Bakkt’s minimum account requirements. Until then, these investors can continue holding BTC or alternative coins such as Litecoin and Ethereum in their wallets, or, if they have sufficient capital, rely on Bakkt’s services once they launch next week.
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