The Chicago Board options Exchange (Cboe) has decided to withdraw its application to launch the world's first Bitcoin ETF by VanEck and Solid X. The application was made to the Securities and Exchange Commission (SEC) back in July, but the verdict has faced several extensions so the board could have sufficient time to make its decision.

The Cboe withdrew the application following the US's government shutdown which has affected the SEC. The shutdown was induced by President Donald Trump including the budget for the border wall in the government's budget which the Democrats objected against.

Following the SEC's most recent extension for the Bitcoin ETF, a decision had to be made by the end of February. However the US government shutdown which involved the SEC would have an impact on the verdict. Jake Chervinsky, a lawyer for US-based Kobre & Kim, said on twitter: "By law, that means if the SEC fails to make a decision by the February 27 deadline, the ETF will be automatically approved."

There is still a skeleton team working at the SEC during the shutdown to ensure no deadlines will be missed, according to Chervinsky. If the shutdown was to continue past the deadline of February 27, Chervinsky wasn't confident the ETF would be approved. He believed the board would form a decision before the deadline which would most likely be a rejection.

Jan Van Eck, CEO and founder of VanEck, spoke with CNBC saying the firm needs the government to be open for the application to be clearly and convincingly pitched to the SEC. As a result of the approval for the Bitcoin ETF becoming increasingly unlikely, withdrawing the application was the best decision. The firm will begin the process again once the shutdown has been lifted.