CBOE & bitcoin ETF (exchange-traded fund)
If the SEC approves the application, this would mean that the exchange could get a bitcoin ETF license, which would give a boost the whole crypto industry, given the CBOE’s reputation as one of the most significant futures exchanges.
In June 2018, the SEC requested opinions from industry experts concerning ETF, being offered through the VanEck SolidX Bitcoin Trust. The VanEck SolidX Bitcoin Trust is a joint project of financial companies VanEck and SolidX.
CBOE’s unsuccessful streak
This is not CBOE’s first attempt at obtaining a license for bitcoin-related ETF.
In December 2017, CBOE started its bitcoin journey by becoming the first significant exchange for allowing bitcoin futures trading.
Soon after, CBOE has requested the SEC to list six bitcoin-related ETFs. These six ETFs were First Trust Bitcoin Strategy ETF, First Trust Inverse Bitcoin Strategy ETF, REX Bitcoin Strategy ETF, Rex Short Bitcoin Strategy ETF, GraniteShares Bitcoin ETF, and GraniteShares Short Bitcoin ETF.
In March 2018, after that attempt was unsuccessful, CBOE president Chris Concannon made his bid. He wrote a letter to the SEC saying he believes that markets will support a bitcoin exchange-traded product (ETP). His attitude was that his company was operating on entirely legal terms and that they had no run-ins with the law at a time when lawmakers across the world are trying to define a regulatory framework covering cryptocurrencies.
SEC rejected CBOE’s request, stating:
“Based on the record before it, the Commission believes that the significant markets for bitcoin are unregulated. Therefore, the Commission does not find the proposed rule change to be consistent with the Exchange Act.”
In June 2018, things started to have a bit more positive outlook, as the regulator finally began the process of analyzing CBOE’s request for the coveted bitcoin ETF license.
Will bitcoin ETF license become a thing in the future? share us your thoughts.