In what is likely to prove to be a bearish signal for the cryptocurrency markets in the short run, CBOE has withdrawn its proposal for a rule change that would allow creation a Bitcoin exchange-traded fund (ETF) by VanEck and SolidX. ETFs have long be considered by many in the crypto ecosystem to be the most promising way of allowing for much more massive participation of institutional investors in the sector. Of the ETF proposals submitted to the US Securities and Exchange Commission CBOE’s VanEck – SolidX project has been believed to be the most likely to be given the green light.
No official reason was provided for the withdrawal but the sources cited by Coindesk believe that it may be due to the ongoing US government shutdown that would have doomed the initiative to being rejected by the SEC. Van Eck’s CEO told Coindesk that the proposal would be resubmitted at a later date.