On Wednesday, a well-analyzed proposal recommending a listing of a bitcoin exchange-traded fund done on the Cboe BZX Exchange was taken back. And the blame has been put on the ongoing partial U.S. government shutdown.
As the media reported, the proposal filing is temporarily withdrawn, according to VanEck from Gabor Gurbacs. He also informed that the group is actively working with regulators and significant market players so that they can develop an appropriate market structure for a Bitcoin ETF and other crypto ital assets.
Jan van Eck, the head of VanEck, stated that the government shutdown’s effect on the Securities and Exchange Commission (SEC) hampered the procedure among regulators and those looking for the ETF’s permission. As indicated by van Eck, the talks around the proposition – at first submitted last June and subject to permission delays – needed to stop.
He further said that along with these lines, one would realize the shutdown influences the SEC. The group was occupied with discussions and dealings with the SEC about the bitcoin-related issues, custody, market control, costs, and that needed to stop.
Thus, rather than attempting to sneak past, we simply had the application pulled, and we will re-record and reconnect in the talks when the SEC moves once more.
Questioned by media on whether the proposal would have been dismissed at any time because of worries about custodianship and bitcoin’s costs, van Eck said that they think they have entirely strong responses to those questions, yet they simply need to show it convincingly to the regulators.
He said that the group was making efforts to do that yet they clearly can’t have meetings with regulators while they’re closed down.
One attorney said that the ETF backers settled on the correct choice to pull back their proposition. The shutdown was the last nail in the ETF’s casket since the SEC doesn’t have enough staff to audit or permit any proposed principle changes at the present time. He said that pulling back the proposition prevents the SEC from issuing another request saying the bitcoin markets aren’t prepared for an ETF.
The choice to pull back is a choice to live to battle one more day’ – Jan Van Eck has said. He will re-file the proposition after the shutdown, so he likely needed to abstain from setting another situation that would make it harder to succeed, later on, the attorney wrote in an email.