What Really Happened?
Reports say the the withdrawal of the proposed rule change was withdrawn on January 22, 2019. Cboe BZX Exchange filed the proposal last June 2018. It was at the same time when an investment company known as VanEck teamed up with SolidX financial services provider to help physically-backed Bitcoin ETF a reality in the US. There have been many such proposals similar to this. However, in those cases they relied on price of the cryptocurrency rather than the Bitcoin Futures contracts.
The US SEC has delayed deciding upon the Bitcoin ETF multiple times. It even asked the public for opinion and carried out meetings with the proponents of the BTC ETF. In fact, February 27, 2019, was set as the final deadline for their decision. However, Cboe BZX Exchange’s sudden withdrawal of their application helped the SEC in taking any harsh decision, which would have faced
Some security lawyers reportedly speculate that the ongoing government shutdown is one of the main reasons for such abrupt withdrawal of the Bitcoin ETF application. They say the partial federal government shutdown has made it sure that the SEC office doesn’t have any staff left for work. That’s why there are no one to review the proposed change in rule.
What did VanEck’s CEO and Director say about the Sudden Withdrawal of the Bitcoin ETF Proposal?
When reached for comment, Gabor Gurbacs (Director of VanEck’s digital asset strategy) confirmed the reports that they have temporarily withdrawn the filing. He went on to say:
“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.”
Earlier on Wednesday, VanEck CEO Jan van Eck told media that the withdrawn proposal will be resubmitted later after carrying out continued discussions with the US SEC. He went on to say:
“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.”
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