According to reports, the Chicago Board Options Exchange (CBOE) has withdrawn a rule proposed by them to SEC which could have opened the gates for the launch of a Bitcoin exchange traded fund (ETF), with the likes of VanEck and SolidX, ready to back it up.
In a notice that came up on the U.S. Securities and Exchange Commission (SEC) website, the regulatory’s deputy secretary informed the public about the decision by Cboe BZX Exchange to pull out it’s proposed rule change, which would have granted them permission to trade shares of VanEck SolidX Bitcoin Trust post-approval. The filing of the withdrawal took place on Jan.22.
Last June, VanEck and SolidX, one being an investment firm while the other being a financial service provider, had a common goal which was to introduce a physically backed Bitcoin ETF in the market.Their proposal was also built around the same basis.
Despite repeated delays by SEC to pass the proposal, a final deadline for Feb.27 had been set for the regulator to decide on the proposal’s fate.
Although, no conclusive statement has been provided addressing the sudden withdrawal, many legal experts believe that due to the US shutdown that has been looming for over a month now, was the main factor in Cboe’s withdrawal.
What with minimal staffing at most government offices in the U.S. due to the present scenario, chances were that ETF would have had their application rejected.
In communication with a media outlet, director of digital asset strategy at VanEck, Gabor Gurbacs, said in an email that their proposal “has been temporarily withdrawn.”
He further added:-
“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.”
VanEck CEO, Jan van Eck, in talks with CNBC earlier on Wednesday said that their application was being withdrawn for the time being but they were in continuous discussions with SEC.
“We were engaged in discussions with the SEC about the bitcoin-related issues, custody, market manipulation, prices, and that had to stop. And so, instead of trying to slip through or something, we just had the application pulled and we will re-file when the SEC gets going again.”