Cboe Withdraws its Application for a Bitcoin ETF

Bitcoin Exchange Traded Fund (ETF) has been touted as the holy grail of the crypto market. Experts say an ETF would eliminate some of the drawbacks and attract more investors into the crypto blocks. But gaining one hasn’t been a walk in the park.

A myriad of crypto firms have filed for an ETF and the U.S. Securities and Exchange Commission (SEC) has rejected their application as many times as they have been filed. Applications that are not rejected are often held in a long process of review with little or no hope for crypto investors or enthusiasts. The SEC-ETF drama has been on for quite some time and just when we thought the SEC is having a change of heart, cryptos experienced a meltdown that has lingered for way too long.

The SEC has always cited price volatility and market manipulation as its concerns for not jumping at the idea of approving a Bitcoin ETF, and Bitcoin falling over 80% from its all-time high isn’t making it any easier. To make matter worse, Cboe reportedly withdrew its application for a Bitcoin ETF on Wednesday. This raised many concerns among crypto investors and enthusiasts who are confused as to whether or not an ETF would ever be approved. Could this be the end?

Jan Van Eck, the founder and CEO of VanEck, said in an interview with CNBC that VanEck is prepared to answer the SEC’s questions but they need the government to reopen (which it now finally did) to make their claim clear and convincing to the regulators. He added that withdrawing their application for an ETF by no means indicate that they lost faith in themselves or the Bitcoin market instead, it was the right call to make as the SEC is on shutdown and they can’t just leave the application sitting there.

He asserted that the firm is ready to refile a Bitcoin ETF as soon as SEC reopens, which might happen again now that the shutdown is over (at least temporary).

In related news, the second attempt by the Winklevoss twins to list shares of a separate Bitcoin ETF with the SEC saw an outright rejection because the SEC is yet concerned about fraud and manipulation of Bitcoin and the overall protection of crypto investors. Speaking on the continued rejection of ETF filings, Jay Clayton, the Chairman of the SEC, explained that he was expecting a better market surveillance and custody for cryptos before coming on board with the idea of approving the first-ever Bitcoin ETF.

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