Share this article
Bitcoin ETF Proposals Withdrawn After SEC Pushback
Several firms seeking to list exchange-traded funds (ETFs) tied to bitcoin have withdrawn their filings at the request of officials from the SEC.
By Nikhilesh De
Updated Sep 13, 2021, 7:21 a.m. Published Jan 9, 2018, 9:00 p.m.
Make us preferred on Google
UPDATE (10th January 9:57 a.m. EST): VanEck and First Trust Advisors LP have also withdrawn their efforts to create bitcoin-tied ETFs, according to public filings.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Several firms seeking to list exchange-traded funds (ETFs) tied to bitcoin have withdrawn their filings at the request of officials from the U.S. Securities and Exchange Commission.
, Exchange Listed Funds Trust and ProShares Trust all filed to create exchange-traded products in the past month. Yet notably, none of the proposed offerings would have held bitcoin directly – rather, their price movements would have been driven by changes in the still-nascent market for bitcoin futures.
In letters dated Jan. 8, Direxion and ELF withdrew their requests, citing feedback from the SEC.
As Angela Brickl, Direxion's secretary, wrote:
"On a call with the Staff on January 5, 2018, the Staff expressed concerns regarding the liquidity and valuation of the underlying instruments in which the Fund intends to primarily invest and requested that the Trust withdraw the Amendment until such time as these concerns are resolved. In response to the Staff's request, the Trust respectfully requests withdrawal of the Amendment."
ProShares' letter, dated Jan. 9, includes similar language. "This request for withdrawal is being made in response to a request from the Staff," Richard Morris, general counsel and secretary for ProShares, wrote.
The timing of these withdrawals is notable, given that the SEC just released two other rule change proposals which could allow for a bitcoin ETF last week. Those proposals, filed by the Chicago Board Options Exchange (Cboe), would exempt its proposed ETFs from several market manipulation rules which govern traditional assets. The SEC is seeking public input on the proposals.
Both of the proposed rule changes note that bitcoin does not behave like traditional assets.
While the SEC has released the Cboe proposals for public comment, it has a longer history of pressing for bitcoin ETF proposal withdrawals. Several organizations killed their ETF efforts last year at the request of the agency – at the same time, at least two of these proposals were denied because bitcoin futures contracts did not exist at the time.
SEC emblem image via Shutterstock
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
BTC, ETH, SOL move higher as markets eye Fed, Mag 7 earnings and weaker dollar
Crypto prices steadied as traders looked past short-term volatility with positioning shifting to the Fed, megacap earnings and a weakening dollar.
What to know:
- Bitcoin hovered just below $89,000 in Asian trading, posting modest gains in a narrow range as traders awaited a key Federal Reserve decision.
- A weaker U.S. dollar and record-setting global equity markets, led by technology shares and AI optimism, have supported risk assets but crypto has lagged metals like gold and silver.
- Analysts say bitcoin's rebound from the $86,000–$87,000 zone reflects reduced leverage and short-term stabilization rather than strong momentum as markets brace for Fed guidance and major tech earnings.
Top Stories
