The backer of a bitcoin fund has dropped an application to list on a US exchange, saying there had not yet been enough progress on regulation of the digital currency market.
Grayscale Investments, which sponsors the Bitcoin Investment Trust, announced that the Intercontinental Exchange's NYSE Arca exchange has withdrawn its application to the US Securities and Exchange Commission (SEC) to list shares of the trust.
The company said:
Grayscale has been closely monitoring regulatory developments in these markets, and although digital currency market regulation continues to rapidly evolve, at this time Grayscale does not believe there have been enough regulatory developments to prompt the SEC to approve the Rule 19b‑4 application for the Bitcoin Investment Trust.
In March the SEC rejected two similar applications based on an analysis of the current state of regulation of the underlying digital currency markets. One of those was backed by investors Cameron and Tyler Winklevoss, the twins made famous by their involvement with Facebook founder Mark Zuckerberg.
CBOE Holdings' Bats exchange, which wanted to host the twins' exchange traded fund, has appealed the ruling.
Grayscale said it will continue its dialogue with the SEC and will closely monitor regulatory developments in order to be prepared to go forward with an exchange listing, although it "cannot predict when this will be".
Listing on a formal exchange would allow investors to trade digital currencies as easily as stocks and would move bitcoin further into the mainstream market.