Cboe BZX Exchange Issues the SEC a Notice to Pull a Rule Change for the VanEck-SolidX Bitcoin ETF
After Months of Waiting for a Decision, Cboe Pulls VanEck-SolidX Bitcoin ETF Proposal
One of the most publicized Bitcoin ETF applications has been the one involving VanEck and SolidX. Recently, the Cboe BZX Exchange brought forth a proposal that would change a specific rule, making it possible for the ETF to be approved, if the rule change itself was approved. However, in a notice from January 23rd, the exchange has withdrawn the proposal entirely.
The decision to withdraw the proposal was announced by Eduardo Aleman, the deputy secretary for the U.S. Securities and Exchange Commission. The proposal had been on the books since June, which came at the same time that VanEck and SolidX team up together to bring the first physically-backed Bitcoin ETF to the market. Similar proposals had brought forth the concept of Bitcoin futures contracts instead.
The SEC has delayed the proposal decision many times. Some of the delays were combined with requests for public comments on the matter, while others had been with meetings involving proponents. However, those delays were coming to a close, since the deadline for a decision would be February 27th.
Though many supporters of the ETF would probably like answers as to why this was withdrawn at all, there is speculation from securities lawyers that it had to do with the shutdown. If the government shutdown continued past the deadline, the ETF would end up being denied anyway, since there’s no one around the SEC to even review the proposal.
CBOE has withdrawn the VanEck/SolidX bitcoin ETF proposal (https://t.co/812Ym7U7Hh).
They haven't given a reason yet, but withdrawal implies that they expected denial & didn't want another SEC order setting bad precedent for the future.
There will be no bitcoin ETF in Q1 2019.
— Jake Chervinsky (@jchervinsky) January 23, 2019
CEO of VanEck, Jan van Eck, had said that the proposal will return at a later date, though the company plans to continue this conversation with the SEC in the meantime.
Attorney Ethan Silver of the Lowenstein Sandler law firm spoke to CoinDesk on the matter. He explained, “If [the SEC] were forced to deal with [the proposal], they would sooner deny it than be put in a position [where it is approved on a technicality].”
[scribd id=398088269 key=key-4w1cRJCHbQKjL9EiYumF mode=scroll]