CBOE BZX Exchange has withdrawn its application for a proposed rule change that would have allowed to create the Bitcoin (BTC) exchange-traded fund that is physically backed by financial entities.
The U.S. Securities and Exchange Commission (SEC) made the announcement Wednesday signed by Deputy Secretary Eduardo Aleman. It states that CBOE BZX exchange has withdrawn its application for the proposed rule change that would have listed VanEck SolidX Bitcoin Trust if the application was approved.
It started as a good plan with best intentions for the cryptocurrency industry. Investment firm VanEck partnered with SolidX in June 2018 with the objective of providing a physically-backed bitcoin ETF. But the U.S. government doesn’t seem to be thrilled with the idea at all as it delays any decision on the proposal. It even solicited the public’s comment and sought meetings with various people concerns and set a deadline to come up with a decision by Feb 27.
The government’s shutdown which have delayed the decision on the matter may or may have triggered CBOE’s decision to withdraw the application. But Bloomberg reported VanEck’s director of digital asset strategy saying that the Bitcoin ETF filing has been temporarily withdrawn.
“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 also took to Twitter to announce the withdrawal:
The Bitcoin ETF filing has been temporarily withdrawn. 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. Will keep you updated. pic.twitter.com/o9yiN47ZKe
— Gabor Gurbacs (@gaborgurbacs) January 23, 2019
Temporary or not, hopefully, CBOE reconsiders its decision as many crypto industry analysts have pinned their hopes on the proposed rule change that would have paved the way for Bitcoin ETF which a lot of people have been wishing for.