VanEck, ProShares and Raffety Assets Management pulled out their ETF proposals at a request by SEC’s regulator.

Raffety Assets said that SEC “was worried about valuation and liquidity” of the bitcoin-related asset.

However, none of the proposals were Bitcoin ETF. Bitcoin ETF is valuable; it would demand the acquisition of actual bitcoins to back the ETF. The plans were just related to the future markets for Bitcoin. Nonetheless, the ETFs were embraced by the bitcoin community as tools to usher in Bitcoin ETF.

Indeed, some bitcoin investors thought their optimism was justified after the bitcoin futures market was released last month. The SEC left the door open by rejecting Winklevoss ETF in 2017. SEC’s unwillingness to sanction the ETF is worrying.

Nonetheless, the wheels of regulation turn slowly. In the words of Chris Concannon, Cboe CEO, “That will take time.”