The Cboe BZX Exchange has withdrawn a bitcoin ETF application in the middle of US government shutdown. If passed, would open the door for a bitcoin exchange-traded fund (ETF) supported by VanEck and SolidX. According to a filing with the Securities and Exchange Commission. The SEC’s permission is required before VanEck and SolidX associates would be ready to pitch their stock on Cboe’s BZX exchange.
U.S. Government Shutdown
On June 20, 2018, Cboe BZX Exchange (BZX) had filed with the Securities and Exchange Commission, following the Section 19(b)(1) of the Securities Exchange Act of 1934 a suggested rule modification to pitch and trade shares of SolidX Bitcoin Shares distributed by the VanEck SolidX Bitcoin Trust under BZX rule Commodity-Based Trust Shares.
Most SEC workers are on leave because of the partial cessation of the federal government. That postures a dilemma for Cboe because the regulator’s deadline to choose on the application was quickly nearing.
Bitcoin enthusiasts have been impatiently anticipating the permission of a bitcoin ETF, which some people say would lead in new consumers to the fighting asset class. The world’s biggest cryptocurrency is sinking more than 81% from its peak. SEC deputy secretary Eduardo Aleman mentioned that the Cboe BZX Exchange canceled its application for a rule modification. The resolution would have enabled it to register shares of the VanEck SolidX Bitcoin Trust.
Bitcoin ETF Proposals
In the month of August 2018, a total of 9 products were submitted by Bethsada, Maryland based ProShares, New York, New York-based Granite Shares and Milwaukee, Wisconsin based Direxion. All were rejected by the SEC. The SEC had also declined the second effort by Cameron Winklevoss and Tyler Winklevoss, originators of crypto exchange Gemini, to pitch shares of a distinct bitcoin ETF. The monetary watchdog mentioned solicitudes over investor security, cheat and direction of bitcoin, particularly since much of the dealing is executed in deregulated foreign exchanges.
ProShares and Granite Shares were both trying to register two products, a Bitcoin ETF and Short Bitcoin ETF. Direxion had submitted five products linked to the price shift of Bitcoin. There were two for running short, Daily Bitcoin 1X and 2X Bear Shares, and two for running long, Daily Bitcoin 1.25X, 1.5X and 2X Bull Shares. GraniteShares Bitcoin ETF was designed for the Cboe Exchange, while the ProShares and Bull Shares projects were designed for the NYSE Arca exchange platform.
The crypto world has conceived about a bitcoin ETF since the year 2013 when the original design for the Winklevoss Bitcoin Trust was registered with the U.S. Securities and Exchange Commission (SEC). After that, eight other companies SolidX (and Van Eck), Grayscale, ProShares, Direxion, GraniteShares, First Trust, REX Shares and, as of January 10, Bitwise — have proposed filings as well.
VanEck’s founder and CEO, Jan Van Eck, told CNBC that they intend to refile but can’t explain various SEC’s issues until the government resumes. He said
We were trying to do that but we obviously can’t have meetings when they’re shut down. Instead of trying to slip through or something, we just had the application pulled.
The proposal was filed in the month of June 2018, when VanEck, a venture firm, coupled with monetary assistance provider SolidX to give a physically-backed bitcoin ETF to the business. According to Coindesk, VanEck director of digital asset strategy Gabor Gurbacs said that the filing has been tentatively withdrawn and they are actively moving with regulators and influential market associates to establish proper market arrangement cores for a Bitcoin ETF and digital assets, in general.
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