At the request of US SEC officials, several funds, including ProShares, Raffety Assets Management, and VanEck, have withdrawn their applications related to the launch of Bitcoin ETFs. The decision follows SEC’s concerns over the liquidity and valuation of Bitcoin. The proposals were actually Bitcoin futures ETFs as the reference rate would be based on the price of futures traded in CME and CBOE.
It can be remembered that the SEC had rejected the ETF proposal submitted by the Bitcoin billionaire brothers Winklevoss, last year. The market was expecting the SEC to consider the proposals, following the launch of Bitcoin derivatives by CME and CBOE last month. A successful launch of Bitcoin Futures ETFs would have accelerated mainstream acceptance of the crypto currency.