Cboe Withdraws Its Bitcoin ETF Proposal

January 24, 2019 | AtoZ Markets – On Wednesday SEC of the U.S. announced that Cboe Global Markets Inc pulls its Bitcoin ETF proposal, which the U.S, exchange submitted to the regulator last summer. This event followed SEC rejection of the Winklevoss second attempt to list shares of a separate Bitcoin-ETF. Does it mean that the Bitcoin enthusiasts experienced a serious failure?

SEC stated not being comfortable approving ETF yet

Almost two years ago Cameron Winklevoss and Tyler Winklevoss the founders of the Gemini crypto-exchange failed to persuade SEC to approve their Bitcoin-ETF once again. Explaining the reason of the Winklevoss offer second rejection, the U.S. financial watchdog cited concerns about investor protection, fraud and the manipulation of Bitcoins, especially since most of the trade is carried out in unregulated offshore markets.

Last year, SEC Chairman Jay Clayton said that organizations need to better monitor the market and store cryptocurrency before “getting comfortable” with Bitcoin ETF.

Cboe was a new Winklevoss hope?

As the Securities and Exchange Commission stated on Wednesday, Cboe Global Markets pulled an application to create the world’s first exchange fund Bitcoin Exchange, or ETF. Cboe Global Markets is an American company that owns the Chicago Board Options Exchange and the stock exchange operator BATS Global. Last summer, the company proposed rule change to list and trade shares of SolidX Bitcoin Shares issued by the VanEck SolidX Bitcoin Trust under BZX Rule. The proposed rule change was published for comment in the Federal Register on July 2, 2018.

On August 7, 2018, the Commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change.

Bitcoin supporters were eagerly awaiting the approval of Bitcoin ETF, which many say will open up new customers for the asset class. The world’s largest cryptocurrency fell more than 80 percent of its maximum reached during the madness of retail trade in 2017, and decreased by 1 percent, about 3,540 dollars on Wednesday. Cboe’s application would enable VanEck Associates Corp. and SolidX Partners Inc. to list their Bitcoin ETF on the Cboe BZX Exchange.

CEO of the future ETFs is ready for discussion with SEC

VanEck founder and CEO Jan Van Eck told one of the U.S. media outlets on Wednesday that he is ready to answer many SEC questions. But in order to state their arguments “clearly and convincingly for regulators,” it is necessary that the federal government start working. Most of the SEC employees were sent on vacation indefinitely due to the partial shutdown of the federal government.

Vanek explained in one of his recent interviews that their company “tried to do this”, but could not hold meetings with SEC because of the “shot down”. “Instead of trying to slip or something like that, we just pulled out the application,” he added.

VanEck will keep working on getting SEC approval

The ETF’s approval process and other SEC applications for such things as initial public proposals remain on hold, as Democrats in Congress and President Donald Trump having argues about the funding of the border wall.

The U.S. agency employees “ready to respond to emergencies related to market integrity and investor protection, including law enforcement,” but most of the other functions are closed, regulator said on its website.

Vanek shared with the media that the company plans to keep trying to get Bitcoin ETF confirmation from SEC, emphasizing that the firm would resume the Bitcoin-ETF discussion “when the SEC starts working again.”

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