Five firms have withdrawn their SEC applications for bitcoin ETFs in the past 48 hours. Multiple sources reported the SEC had concerns about the liquidity and valuation of the newly launched futures contracts on which the ETFs would be based.
Currently, futures on bitcoin are trading on the Cboe Futures Exchange and the Chicago Mercantile Exchange after launching in December.
The firms withdrawing their filings, which covered long and short funds, include the following:
- First Trust
- Exchange Listed Funds Trust (for funds filed on behalf of REX ETFs)
The withdrawals are just the latest setbacks for bitcoin ETFs. Back in March, the SEC rejected the Winklevoss Bitcoin ETF (COIN), which would have held physical bitcoins rather than futures; it had been in registration for more than three years.
In September, the firms planning to launch funds based on bitcoin futures, including VanEck, Rex and ProShares, were asked to withdraw their filings until the futures contracts actually launched. Those firms and a few others submitted new ETF filings to the SEC in December once the futures began trading.
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