Cboe BZX Exchange officially withdrew their Bitcoin Exchange Traded Fund application. This was filed last June, and the official withdrawal of the application saw the light on January 22. A letter published on the SEC’s website has made the news official. SEC deputy secretary Eduardo Aleman wrote that the Cboe BZX Exchange rescinded its request for a rule change. The change might have allowed them to list shares of the VanEck SolidX Bitcoin Trust.
VanEck said that the application’s withdrawal was the result of the US government shutdown.
It was filed last June, and the ETF application had been of great interest to Bitcoin traders. SEC chairman Jay Clayton insisted that a Bitcoin ETF is a long way. The very nature of cryptocurrency markets has made it difficult for the SEC to approve an ETF. What investors are expecting is that trading should be done in the commodity which underlies that ETF and this would make sense and it would be risk-free from the case of manipulation.
Companies seeking ETF include Coinbase, Gemini, and Bakkt. The continued delays by the SEC has led to a VanEck executive recently told in frustration that- “Coinbase shitcoins is apparently OK for millions of retail investors. But Bitcoin ETF for institutional investors sounds too crazy. What f*ing parallel universe is this?”
A report from the Bitwise Asset Management Team stated that the US investors have been waiting on a Bitcoin ETF to be involved in the crypto space. An ETF will add a degree of validation to industry since it is in desperate need of one. “We recently commissioned a formal survey on 150 financial advisors, and a strong majority, about 58% of them said that an ETF would be their most preferred way of investing. When they were asked, what would make them more comfortable, allocating crypto in client portfolios, 54% of them said “better regulation” and 35% of them said “the launch of an ETF.” This has been accounted as true for many family offices and institutions as well.
The Bitwise team went on to say that an actual approved ETF will be the beginning of the process. “The day an ETF is listed would just be the beginning of the journey for a new fund. Advisors and professionals are currently managing the vast majority of savings and assets in the US. When the ETF lists, many investment committees will be able to begin the process of evaluating it. Research teams, private banks, and platforms will be able to begin the process of considering offering it to clients.
Ten years after the cryptocurrency revolution, full regulations still haven’t existed in most parts of the world. Many crypto firms have also resorted to going to countries which are openly friendly to them, and they include Malta or Estonia. The crypto exchange giant Binance has moved to Malta.
Some politicians in the US have been seeking to remove cryptocurrencies from the oversight of the SEC since they think that this might free the industry from building and flourishing. Ohio has already taken its steps in becoming the US hub of blockchain innovation and has allowed taxes to be paid in terms of Bitcoin. This reporter has also openly called for a tax holiday that would help incentivize the growth in the industry.