In breaking news, the VanEck-SolidX Bitcoin exchange-traded fund (ETF) proposal has officially been withdrawn by Cboe BZX and VanEck SolidX Bitcoin Trust.

The proposal would have established the first ever cryptocurrency ETF, a major win for the industry as a whole and opening the potential for greater institutional investment.

The news broke with the publication of a document by the US Securities and Exchange Commission (SEC) detailing the withdrawal. A decision was supposed to be made on or before Feb 27, after various delays last year made in order to study the implications of the ETF more fully.

Hopes dashed

Some insiders had hoped that the government shutdown would lead to an easy approval process. However, this is clearly not the case. In fact, on the contrary, Jan Van Eck has publicly stated that the ETF was not going to be approved, and so, rather than continue with the process, the proposal was withdrawn. He also expressed hope that he and others would be able to convince the SEC regarding overseas Bitcoin trading functionality.

Not a huge surprise?

The news has already sent shockwaves across the crypto-sphere, as industry insiders are being forced to reckon with the potential implications of a future SEC ruling on the subject. In light of recent legislation being introduced in Congress, a strongly negative ruling by the SEC at this time may have had far greater implications than the withdrawal.

Others had conjectured that the government shutdown may have the opposite effect, essentially resulting in denial because of inactivity. This would have had similarly negative industry implications.

On either side of the aisle, the news means that mainstream cryptocurrency adoption in investment circles must wait longer. However, given the potential for major rulings against Bitcoin, the withdraw of the proposal may be the best news crypto-piles could have hoped for.

Think a future Bitcoin ETF will eventually come? Or is it a pipe dream, given the SEC climate now? Let us know in the comments below!