Ongoing Shutdown by US Government Forces Temporary Withdrawal of a Bitcoin (BTC) Exchange-Traded Fund

Over the past twelve months, Bitcoin (BTC) has been struggling. The struggle of the digital currency is mainly due to the high expectations of traders and investors after it saw a massive price surge in December 2017. In 2017, the value of Bitcoin (BTC) surged from below $1k at the beginning of the year to about $20k at the end of the year.

However, the value of the digital currency has been on a continuous downward trend over the past twelve months. It has declined from its record high to about $3k as BTC and digital currency investors worry over heavy-handed regulators, lackluster institutional investments, and delays to network upgrades.

CBOE BZX Exchange Withdraws Its Bitcoin ETF Proposal

The negative waves in the crypto market are getting worse. Now, the ongoing shutdown by the US government has forced the temporary withdrawal of a closely watched Bitcoin (BTC) ETF application filed by CBOE BZX Exchange. This is a big blow to those hoping that the much-anticipated exchange-traded fund for Bitcoin (BTC) would bring a fresh wave of investments into the stagnating market.

The Bitcoin (BTC) ETF application has faced a tough battle for approval by the U.S SEC because of concerns that the value of the digital currency is vulnerable to market manipulation. The proposal is backed by VanEck – an investment firm – and SolidX – a financial services provider.

The verdict to withdraw the proposal amidst the ongoing US government shutdown was announced by the U.S Securities and Exchange Commission in a filing. The announcement has seen the value of the digital currency decline slightly, though it is still trading close to the $3,500 mark where it has been since early this month.

CBOE Withdrew Its Proposal with the View to Reapply in the Near Future

With several SEC employees furloughed due to the partial shutdown by the government and the deadline of the regulator to decide on the proposal fast approaching, CBOE decided to withdraw the SolidX and VanEck proposal with the intentions of reapplying again in the near future.

The Chief Executive Officer of VanEck – Jan van Eck – told CNBC that: “The shutdown affected the U.S SEC, we were engaged in discussions with the SEC regarding Bitcoin-related issues, market manipulation, prices, custody, and that had to stop. So, rather than trying to sleep through or something, we just had to withdraw the application and we will re-file and reengage in the discussions when the SEC gets going again.

Bitcoin (BTC) Price Today – BTC / USD

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In a statement, CBOE said their decision to withdraw their proposal with the SEC is a faction of timing that has to do with the US government shutdown as the end of the review period draws near. The firm said they have plans of resubmitting the application at a later date and look forward to continued discussions with the U.S SEC.

In an email to clients, the senior market analyst at eToro – Mati Greenspan – said that the proposal of CBOE had a very slim chance of being approved. Jay Clayton – the chairman of SEC has been emphasizing on the fact that the Bitcoin (BTC) market isn’t yet mature for an exchange-traded fund. The recent price trend of the digital currency has confirmed this, as there has been a lot of price spikes late due to liquidity.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

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