Cboe Withdraws VanEck/SolidX ETF Application

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The Cboe withdrew its application for a Bitcoin ETF on Friday, just nine days after VanEck and SolidX ETF Trust was announced, it has just been revealed. The futures platform, which stopped supporting Bitcoin in March, silently removed their application with the Securities and Exchange Commission (SEC) for a rule change that, had it been passed, would have allowed the trio to offer the first fully fledged Bitcoin ETF. The move, which was only revealed yesterday by the SEC, follows VanEck/SolidX offering a pseudo-Bitcoin ETF to institutional investors on September 3, which it seems the Cboe may have taken a dim view of.

Did Cboe Take Umbrage to VanEck/SolidX ETF Trust?

A notice filed by the SEC yesterday stated that on September 13, BZX (the Cboe) “withdrew the proposed rule change”, which was due for a decision by October 18. This was the second proposal put forward by the trio following its withdrawal and subsequent resubmission in January, and although no specific reasons have been given for the Cboe withdrawing this time around, especially with a decision so close, it seems likely that they weren’t best pleased with VanEck and SolidX launching an institutional Bitcoin ETF, which is where most of the money would have come from had the full ETF launched.

Bitcoin ETF Chances Recede

What does this mean for the likelihood of a full Bitcoin ETF in the near future? Unless the Cboe finds another partner willing to jump through the hoops of an ETF application, and once more endure the almost year-long wait that accompanies any decision, it’s probable that Cboe are done with the whole thing. There are still other ETF applications in the pipeline, but the Cboe/VanEck/SolidX iteration was always considered the strongest candidate, which means that we will likely have to wait for another equally strong candidate/candidates to put themselves forward. However, with Bakkt due to launch in a matter of days and the VanEck/SolidX ETF Trust now up and running, perhaps the need for a Bitcoin ETF has been reduced to the point where no one is willing to go through the pain to satisfy what would likely be a reduced customer base.