VanEck "Temporarily Refused" to Create Bitcoin ETF Due to US Government Shutdown

Last year, companies VanEck and SolidX submitted an application to the SEC to create Bitcoin ETF. But now they are forced to abandon the venture because of US government shutdown. VanEck claims that this is “temporary measure.”

Back in June 2018, VankEck and SolidX submitted an application to the US Securities and Exchange Commission (SEC) to create a Bitcoin ETF with physical delivery of an asset. As planned by the companies, the new instrument would have to be traded on the CBOE BZX exchange. The regulator was slow with the decision and eventually moved the deadline to February 27, 2019.

On Wednesday — just a few days before the final decision — the companies decided to withdraw the application. According to Gabor Gurbacs, VanEck director of digital asset strategy, this is a “temporary issue.” Companies continue cooperating with the regulator to create the necessary market infrastructure for Bitcoin ETF.

The company's CEO, Jan Van Ek, is convinced that the shutdown of US government because of the disputes between President Donald Trump and the Democratic Party over the wall on the border with Mexico is to blame.

“The SEC was affected by the government shutdown. We discussed Bitcoin issues with SEC, custodial services, market manipulation, and prices. But these negotiations had to be stopped,” said Jan Van Ek on CNBC.

According to the CEO, the company will again submit an application to create a Bitcoin ETF when the SEC returns to full-fledged work.

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