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BZX Withdraws Requests for the Proposed Rule Change to SEC

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On 23rd Jan, BZX Equity Exchange (an initiative of Chicago Board Options Exchange) withdrew its proposed rule change by Securities and Exchange Commission (SEC), U.S. This rule change was to originally enable it to list a BTC exchange trade Fund (ETF.)

The investment firm- ‘VanEck’ and the financial services company- ‘SolidX’ were supporting the ETF. This rule change proposal was filed with SEC last year in June. Since then it has been facing several delays based on Section 19 of the Securities Exchange Act. After several delays, a final date of hearing was allotted for 27th February, but now BZX Equity Exchange has withdrawn the proposed rule change application.

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As per the CBOE’s spokesperson, the main reason behind the withdrawal is the shutdown of the U.S. government, since the end of the review period is around the corner. According to some legal experts, there are chances of SEC to limit its operations due to the government’s shutdown. Going into the deeper layer behind the partial shutdown is the political complication over the U.S.- Mexico border. As per the CBOE’s spokesperson, there are chances of a re-filing at a later point of time in future, once the situation is under control.

According to SEC filing, each share of the VanEck SolidX Bitcoin Trust is fixed at 200K Dolar. To this, the CEO of SolidX- Daniel Gallancy said that the high quoted prices are due to the ‘fund’s intention to focus on institutional investors’ rather than the retail investors.

SEC Commissioner- Hester Peirce said-

“Possible could be 20 years from now, or it could be tomorrow. Do not hold your breath. The SEC took a long time to establish Finhub. It might take even longer to approve an exchange-traded product.”

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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