Nick Chong · 1 week ago · 2 min read · Insights via Grayscale Investments
The VanEck-SolidX Bitcoin ETF proposal was withdrawn—again—from the SEC’s consideration prior to an October decision.
Primer on VanEck-SolidX Bitcoin Shares
VanEck-SolidX first submitted its proposal to list and trade shares of the “VanEck SolidX Bitcoin Trust” under commodity-based trust rules with the Securities Exchange Commission. Securities backed with gold or crude oil held in trust, for example, would fall under these rules.
Proposal withdrawn, again
Today, a document was filed showing VanEck-SolidX withdrew the proposal to list and trade shares of its Bitcoin-backed trust from the SEC’s consideration—once again. The withdrawal comes after the SEC delayed the decision on the BTC ETF on Aug. 12.
Previously, the Commission expressed concerns over whether the ETF can meet federal guidelines for securities exchanges. Many of these concerns pertain to the liquidity, custody, and transparency of the ETF, along with concerns over manipulation in the crypto markets.
Primary concerns from the Securities Exchange Commission
More specifically, the Commission emphasized that Cboe and the Bitcoin trust must demonstrate that the underlying Bitcoin markets are “regulated markets” of “significant size,” among a few other secondary factors.
Meanwhile, VanEck and SolidX maintain that the Bitcoin markets are fundamentally resistant to price manipulation when controlling for wash trading, in line with research conducted by Bitwise. When analyzed appropriately the markets already satisfy the Commission’s criteria, so now it’s a matter of proving that VanEck-SolidX’s surveillance and controls around its trust are adequate.
Among the ETFs pending include proposals from Bitwise, Winklevoss, and Wilshire Phoenix. These ETFs will see decisions by the end of September through mid-October. Additionally, Bakkt’s physically-settled Bitcoin futures are going live at the end of September, making the next few months eventful ones for Bitcoin despite VanEck’s withdrawal.