The Chicago Board Options Exchange BZX Equity Exchange on September 17th withdrew its VanEck/SolidX Bitcoin exchange-traded fund (ETF) proposal a month ahead of the review deadline. The United States Securities and Exchange Commission (SEC) had until October 18th to accept or reject the financial product.
It surfaces that the quest for the first Bitcoin (BTC) ETF seems to be postponed again. While the SEC is still reviewing two other proposals of this kind, the VanEck/SolidX Bitcoin ETF was generally perceived as the strongest contestant to get regulatory permission and debut this investment vehicle in the U.S.
An ETF is a type of investment fund that is tied to the price of an underlying asset, a commodity, an index, bonds or a basket of assets. It is listed and traded on exchanges.
A Bitcoin ETF would track Bitcoin as the underlying asset. This is an indirect way to purchase cryptocurrency in which the investor gets the corresponding security without having to hold the actual BTC coins. If listed on a regulated U.S. exchange, a crypto-powered ETF has the effect of setting the stage for institutional investors.