Alternative Investments/Digital: CBOE Ignites Bitcoin ETF Hope; Files To List VanEck’s BTC ETF
CBOE has filed the 19b-4 Form. The SEC is now time-bound to decide on the VanEck Bitcoin ETF application.
The pressure is now building upon the SEC for approving a bitcoin ETF. Shortly after the Canadian regulators approved two bitcoin ETFs, the Chicago Board Options Exchange (CBOE) has notified the US SEC of its intention to list the BTC ETF from investment management firm VanEck and its Bitcoin Trust. (Cryptonews)
CBOE’s action of filing a 19b-4 puts the SEC on notice to commence its formal regulatory process for review of the VanEck application.
Once the SEC confirms it has begun the review, it has 45 days to reject, approve or extend the review period. The review period may be extended for a maximum of 240 days, however.
CBOE’s justification for a BTC ETF
The CBOE said in its filing:
- The digital assets financial ecosystem, including bitcoin, has progressed significantly. The development of a regulated market for digital asset securities has significantly evolved, with market participants having conducted registered public offerings of both digital asset securities and shares in investment vehicles holding bitcoin futures. Additionally, licensed and regulated service providers have emerged to provide fund custodial services for digital assets, among other services.
- The regulatory landscape has changed significantly since 2016, and cryptocurrency markets have grown and evolved as well. The market for bitcoin is approximately 100 times larger, having recently reached a market cap of over $1 trillion.
- The U.S. Office of the Comptroller of the Currency has made clear that federally-chartered banks are able to provide custody services for cryptocurrencies and other digital assets.
- NYDFS has granted no fewer than twenty-five BitLicenses
- Large insurance companies, asset managers, university endowments, pension funds, and even historically bitcoin skeptical fund managers are allocating to bitcoin.
- Established companies like Tesla, Inc., MicroStrategy Incorporated, and Square, Inc., among others, have recently announced substantial investments in bitcoin.
Advantage: U.S. crypto investors
The CBOE said an ETF would allow U.S. investors access to bitcoin in a regulated and transparent exchange-traded vehicle.
This would reduce premium volatility, management fees, and avoid the need to self-custody spot bitcoin.
It would also reduce risks associated with investing in operating companies that are imperfect proxies for bitcoin exposure.
Back to bitcoin for the CBOE
If the SEC approves, CBOE would be returning to offer a crypto product for the first time after February 2019, according to Coin Telegraph.
On that date, it discontinued BTC futures contracts – a product it commenced in December 2017.
Related Story: Fresh Bid By VanEck For A Bitcoin ETF
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