BZX exchange Cboe withdrew the proposed rule change, which, if approved, would have cleared the way for the adoption of bitcoin ETF from VanEck, and SolidX. We analyze the reasons for the withdrawal of applications.
In the report published by the Deputy Secretary of the Commission securities and exchange Commission (SEC) Eduardo Aleman wrote that the BZX exchange Cboe has cancelled the proposed rule change that would have allowed to issue derivatives on bitcoin SolidX from VanEck, and in case of their approval. The exchange filed its review on January 22.
The proposal was filed in June last year, when the investment firm VanEck teamed up with the financial services provider SolidX to provide the market with bitcoin-ETF with physical delivery (other similar proposals were based on futures contracts for bitcoins, not on the cryptocurrency itself).
The reason for the withdrawal of the application
The SEC postponed several times the decision on this proposal, requiring public discussion and meetings with supporters. The regulator issued a final decision on February 27.
Also read: will the Bitcoin ETF be approved automatically due to the shutdown of the US government?
Although the notice itself does not provide a reason for the recall, some securities lawyers have speculated that the ongoing government closure would result in a refusal to accept bitcoin ETFs as no employee at the SEC can consider the proposed rule change.
In an email to the Director of strategy digital assets VanEck gábor Gorbach reported that the application is "suspended", explaining:
We are actively working with regulators and major market participants to establish appropriate market structure structures for bitcoin ETFs and digital assets in General.
VanEck CEO Jan van Eck said in an interview with CNBC that the proposal was withdrawn and will be submitted later, after ongoing discussions with the SEC. These talks were largely suspended as a result of the continued partial closure of the US government; van Eck explained:
We participated in discussions with the SEC on issues related to bitcoin, storage, market manipulation, prices, and this had to stop. And so, instead of trying to "slip into that loophole" or something, we just withdrew the application and re-submit it when the SEC resumes.
In a previous interview, attorney Ethan silver, Chairman of the broker-dealer practice at Lowenstein Sandler, explained that "if the SEC is forced to deal with a proposal during a government suspension, they would rather reject it than approve automatically for technical reasons."
LINK - https://altstake.io/news/pochemu-vaneck-i-solidx-otozvali-predloghenie-bitkoin-etf