Van Eck: Crypto Investors Return to Gold as SolidX BTC ETF Withdrawn

Jan Van Eck, CEO of Van Eck Associates, told CNBC's ETF Edge that he believes many investors who sold gold for bitcoin during its climb to $20,000 are now returning to precious metals.

His reasoning: the CBOE's withdrawal of the Van Eck SolidX Bitcoin ETF on Jan. 23rd. Interest in cryptocurrencies has slumped in line with the ongoing bear market.

Van Eck believes that the original pull from bitcoin and other cryptocurrencies resulted in less investment in gold.

Van Eck presented evidence that investors are returning to gold, an asset once thought to be at risk of being replaced by bitcoin and other cryptocurrencies.

"I do think that Bitcoin pulled a little bit of demand away from gold last year, in 2017," Van Eck told CNBC's ETF Edge.

"Interestingly, we just polled 4,000 Bitcoin investors and their number one investment for 2019 is gold. So gold lost to Bitcoin, and now it's going the other way."

This evidence seems to explain the reasoning behind the withdrawal of the Van Eck and CBOE-backed SolidX Bitcoin ETF. However, that is not the only reason, there is also a need for a more reliable market framework before such a project becomes viable.

"We are actively working with regulators and major market participants to build appropriate market structure frameworks for a Bitcoin ETF and digital assets in general," he said.

In the past, the SEC has denied ETF applications, including two from known Bitcoin advocates, the Winklevoss twins, as well as delayed their decision on more recent ones-including the SolidX application.

If the likes of CBOE and Van Eck are waiting for a better framework on which to launch their Bitcoin ETF down the line, then perhaps a more stable business environment might spark the next wave of institutional investment.