Bitcoin ETFs: Not Anytime Soon

Earlier this month, a batch of ETF issuers withdrew plans for bitcoin ETFs, prompting investors to wonder when regulators would approve ETFs based on the digital currency.

Direxion, ProShares and VanEck are among a handful of ETF issuers that have withdrawn filings to launch bitcoin ETFs at the request of U.S. regulators. The Securities and Exchange Commission (SEC) requested the issuers withdraw their filings.

The news of the withdrawn plans for cryptocurrency ETFs comes just days after the SEC said it is soliciting comments from the investing public on two proposed rules changes that could prompt the long-awaited introductions of bitcoin ETFs.

Most market observers do not want to guess about the timing for when cryptocurrency ETFs could come to life, but a popular answer seems to be not anytime soon.

“Although several Bitcoin exchange-traded funds have been proposed, they’re unlikely to win U.S. regulatory approval soon, said Tom Farley, who oversees the New York Stock Exchange,” reports Bloomberg. “Fund companies withdrew applications for 12 cryptocurrency ETFs and 2 mutual funds this month after the SEC’s staff said it was worried about keeping investors safe.”

First Trust and VanEck are also among the issuers that withdrew plans for bitcoin ETFs.