A Bitcoin ETF has been the dream of the whole cryptocurrency market ever since the Winklevoss brothers approached the U.S Securities and Exchanges Commission [SEC], with the hopes of an approved rule change. However, much to the Bitcoin brothers expectation, the SEC denied the proposed rule change, twice.
The commission not only turned down the brothers’ request but several other ETFs as well. The reason for the disapproval continues to be market manipulation, price volatility and no control over the outside market place. Nonetheless, the community’s much-awaited Bitcoin ETF was VanEck exchange-traded fund. The final decision on the fate of the ETF was going to be announced somewhere between the last week of February and the first week of March.
However, this was bought to an end by Cboe BZX exchange itself. The firm withdrew their proposal because of the ongoing US Government shutdown. The announcement was made by the commission on January 24, 2019, wherein it stated that the exchange withdrew its proposal on January 22, 2019.
The Founder and CEO for VanEck, Jan VanEck gave clarity on the reason the exchange chose to take this action, during an interview with CNBC. He also spoke about what the next move would be for their Bitcoin ETF.
Jan VanEck started by speaking about why the proposal was withdrawn. He said:
“So technically, as you know, the SEC is affected by the shut down. So we were engaged in discussion with the SEC about the Bitcoin related issues, custody, market manipulation, prices and that had to stop. And so, instead of trying to slip through or something, you know, we just had the application pulled and we will refile and re-engage in the discussion. So, when the SEC gets going again. “
He further stated that the demand from the investors has shifted from Bitcoin to gold again. The CEO said:
“I do think that Bitcoin held a little bit of demand away from gold last year in 2017. Interesting we just pulled 4000 bitcoin investors and their number 1 investment for 2019 is actually gold. So, you know, gold lost to Bitcoin and now, its going the other way.”
This was followed by the Founder speaking about the ETF being rejected as the commission has always shown concerns pertaining to market manipulation and the price. Here, he stated that VanEck has “pretty solid” answers to those concerns and that they just need to demonstrate it to the commission “very clearly”. He went on to say that for this to possible, they will have to have met with the commission, which is currently not possible because of the US Government shutdown.