Yesterday, 23 January, the US Securities and Exchange Commission released a two-page document revealing the temporary withdrawal of the proposed rule change by the Chicago Board Options Exchange (CBOE) BZX Exchange Inc. This proposed rule change was said to lay the groundwork for the long-anticipated VanEck/SolidX BTC ETF
VanEck’s Director of Digital Assets Strategy confirms the news. In a tweet, he mentions the firm is cooperating with ‘regulators and major market participants’ to structure an apt framework for digital assets and BTC ETF.
The Bitcoin ETF filing has been temporarily withdrawn. We are actively working with regulators and major market participants to build appropriate market structure frameworks for a Bitcoin ETF and digital assets in general. Will keep you updated. pic.twitter.com/o9yiN47ZKe— Gabor Gurbacs (@gaborgurbacs) January 23, 2019
According to securities lawyer Jake Chervinsky, the withdrawal is an indication that CBOE and partners foresee a rejection. He further states that a bitcoin ETF is not on the horizon in the first quarter of 2019.
CBOE has withdrawn the VanEck/SolidX bitcoin ETF proposal (https://t.co/812Ym7U7Hh).— Jake Chervinsky (@jchervinsky) January 23, 2019
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.
Cryptocurrency Market Remains Calm
News of CBOE’s withdrawal did not appear to affect the market. Digital currency holders and investors continue to retain their holdings with little sight of selling.
But the overall volume in the cryptocurrency market, apart from an increase from 10 to 31 December, is in steady decline. Low volume is symptomatic of investor wariness which is supposed to generally lead to long consolidation periods and the market trading sideways.