Cboe have withdrawn their proposed rule change to list shares of the SolidX Bitcoin Shares issued by the VanEck SolidX Bitcoin Trust.
The notice was published today to the SEC’s website, stating that BZX withdrew the proposed rule change yesterday, January 22, 2019.
The reasoning for the withdrawal is not yet known, but the current government shutdown in the US likely plays a part in the matter.
Jake Chervinsky explained recently on Twitter that the government shutdown was not necessarily positive news in terms of the proposed Bitcoin ETF plans, and if anything, negative.
0/ The VanEck/SolidX bitcoin ETF won't be automatically approved just because the US government is shut down.
I've seen a lot of confusion & misinformation about how the shutdown affects the SEC and its process for handling ETF proposals. I'll try to explain here.
— Jake Chervinsky (@jchervinsky) January 18, 2019
Cboe filed the initial proposal on July 2, 2018. After which the SEC delayed a decision on the rule change multiple times. Now, more than six months later, the rule change has been withdrawn.
Cryptocurrency investors, traders, and enthusiasts were hopeful that a Bitcoin ETF would help bring the cryptocurrency markets out of what has been possibly the worst bear market of all time. Now that the Cboe ETF is off the table, attention will switch to Bakkt as a possible catalyst for a market reversal.