The Chicago Board Options Exchange’s (CBOE) BZX Equity Exchange has withdrawn its application with the Securities and Exchange Regulator (SEC) for the approval of VanEck/SolidX Bitcoin exchange-traded fund (ETF).
Revealed by the market regulator on Tuesday with an official notice, the application was withdrawn by the exchange on September 13. However, no specific reason has been cited for such an abrupt decision.
The decision to finally withdraw the application was taken after a series of delays by the SEC to take a decision on the ETF application. The October 18 final deadline for the application was also approaching by with the regulator needed to approve or reject the Bitcoin ETF proposal.
We are committed to support Bitcoin and Bitcoin-focused financial innovation. Bringing to market a physical, liquid and insured ETF remains a top priority. We continue to work closely with regulators & market participants to get one step closer every day.
— Gabor Gurbacs (@gaborgurbacs)
A flop fund for the institutions
Earlier this month, VanEck and SolidX , circumventing the strict SEC guidelines under the Rule 144A exemption. Only qualified entities with at least $100 million worth assets owned or invested are allowed to purchase the shares of the ETF.
However, the crypto-focused instrument failed to attract the attention of the institutional investors as in around three weeks of the launch of the product, only one basket of the.
Though the company did not clarify any reason behind the withdrawal of the application, it also withdrew its application in January after the prolonged shutdown of the United States government which then increased the chances of rejection of Bitcoin ETF.
Meanwhile, another application of similar crypto-backed ETF by Bitwise and NYSE Arca is pending with the regulator for approval. The crypto company recently updated its application and administrator for the proposed ETF.
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