CBOE Re-Files the VanEck/SolidX Bitcoin ETF Application With the U.S. SEC

01. Feb 2019 Posted by Akolkar B on News

After announcing a temporary withdrawal of its Bitcoin ETF application last week, the Chicago Board Options Exchange (CBOE) has re-filed its VanEck/SolidX Bitcoin ETF proposal with the U.S. Securities and Exchange Commission (SEC).

The re-filing of the Bitcoin ETF comes just over a week’s time after the withdrawal. The latest application shall be reviewed by the SEC, and if approved, it will allow the Cboe BZX Exchange to list shares of a bitcoin ETF trust.

Investors in the crypto market are eagerly waiting for the entry of exchange-traded-funds (ETFs). Many analysts believe that the arrival of Bitcoin ETF will drive institutional players to pump huge money and usher liquidity in the currently ailing crypto market.

Last week, the VanEck Director - Jan Van Eck - said that the reason behind the pullback of the previous proposal was the ongoing U.S. government shut down. The SEC also declared that it will close its business until the government resume office.

However, the VanEck director for digital asset strategy Gabor Gurbacs said: “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”.

In July 2018, the CBOE had filed its Bitcoin ETF application for the first time. Since then, the SEC has been constantly delaying the decision and its final deadline was set on February 27 i.e. 240 days from the day of initial application. However, VanEck itself pulled the application before the final deadline.

The new application means that the SEC will get additional 240 days to decide on the Bitcoin ETF approval. However, the new application is yet to be published in the Federal Register, after which the SEC’s timeline will start. Thus it could be by the year-end that we could see a Bitcoin ETF product hitting the market.

In the past, SEC Chairman Jay Clayton has remained firm on his denial of several Bitcoin ETF proposals. He believes that heavy crypto market manipulation makes chances of ETF arrival absolutely uncertain. Until crypto exchanges implement sophisticated tools to deal with these notorious activities, he won’t be giving a free signal to it.

Along with CBOE, asset management company Bitwise is competing to bring its Bitcoin ETF to the market. The Bitwise Bitcoin ETF is likely to be listed on the NYSE Arca exchange. NYSE Arca has recently completed the documentation for the ETF filing which is pending the SEC review.