In yet another blow to Bitcoin Exchange Trade Fund (ETF) hopes, the Chicago Board Options Exchange has withdrawn its application to list the VanEck SolidX Bitcoin Trust on the CBOE BZX Exchange according to a new filing submitted to the Securities and Exchange Commission (SEC) this afternoon.
The original application, submitted in June 2, 2018, with VanEck, an investment firm teaming up with financial service provider SolidX to provide physically-backed Bitcoin futures, has been the source of excitement and dismay over the past several months, as eager investors awaited an official approval from the SEC after several heart-wrenching denials.
Markets reacted poorly to the news, with bitcoin slipping even further towards the $3,500 resistance level, which, if the barrier is broken, could spell major trouble for investors moving forward.
Though the letter of withdrawal did not provide a specific reason as to why the proposal was being pulled, some are suggesting that the ongoing government shutdown would likely result in further delays.
Jan van Eck, CEO of Van Eck Associates Corporation and Van Eck Securities Corporation explained on CNBC that the proposal was likely to be resubmitted after further discussion with the SEC, stating “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.”
What’s Next For Bitcoin ETFs?
While VanEck-SolidX pulled their application, there is still hope for ETFs in the future. Between Bakkt and the Winklevoss’ initiatives, investors have a lot of reason to remain bullish in the coming months.
As Bakkt CEO Kelly Loeffler previously mentioned, however, the government shutdown is likely to cause further delays.
Bakkt, for its part, was expected to launch in January, but due to the ongoing drama in Washington, the date has been pushed back, with no new deadline set as of the time of writing.