Cboe has receded its long-awaited bitcoin ETF application, dashing the hope of investors.
On Wednesday, Cboe Global Markets pulled its application for the first-ever Bitcoin exchange-traded fund (ETF). The SEC’s approval would have allowed VanEck SolidX Bitcoin Trust to list their fund on CBOE BZX Exchange.
The application for withdrawal was filed on January 22 and the reason for the action is yet to be disclosed by Cboe. In June 2018, when the Bitcoin ETF was presented for approval, investors were excited about the new innovation. If the Bitcoin ETF had been approved by the SEC, investors who want to get into the crypto market but do not want to be asset owners would have been allowed to gain exposure to BTC.
Speaking on the withdrawal, VanEck’s CEO, Jan Van Eck, told CNBC that the company is willing to give answers to all of the SEC’s questions but that it needs the government to reopen so that they can present their case clearly and convincingly to the regulators.
The CEO said that they were in close communication with the SEC about the custody, market manipulation and prices of the Bitcoin but all that had to stop. Instead of trying to slip through, they had the application withdrawn. According to him, they will refile when the SEC gets back to business.
The SEC had until February 27 to decide on the physically-backed Bitcoin ETF. But with the prolonged government shutdown, the application may not have been approved before the deadline. This may be the reason why the exchange operator withdrew the application, experts suggest. They would rather refile than have their application denied by SEC.
VanEck’s director of digital asset strategy, Gabor Gurbacs, said, in a tweet, that they will continue to work regulators to create a reliable market structure for a Bitcoin exchange-traded fund and digital assets in general. The VanEck SolidX Bitcoin Trust was to usher in a Bitcoin ETF that allows only wealthy investors to buy shares.