A new application for an Exchange-Traded Fund (ETF) for Bitcoin (BTC) has been recently filed with the US Securities and Exchange Commission (SEC). It was introduced by the Chicago Board Options Exchange, also known as CBOE Global Markets, the first firm to request an ETF license for a cryptocurrency since a high-ranking SEC officer ruled that Bitcoin (BTC) and Ethereum (ETH) are not securities.
If this application will be accepted eventually, then it would pave the road to big-time economic and institutional investors to put money on Bitcoin (BTC). In its request, CBOE Global Markets suggested a partnership with VanEck Investment and SolidX, to list and exchange SolidX shares in a trust granted by VanEck through its brokerage firm.
The SEC rejected in 2017 a number of similar filings for Bitcoin (BTC) EFT. The agency even urged applicants to revoke their applications for ETF licenses based on cryptocurrencies, arguing that there was a lack of transparency on a range of matters concerning liquidity, pricing, and safekeeping of the funds. The refusals list contains actions such as that of Barry Silbert, the Winklevoss brothers, as well as those of companies like SolidX and VanEck, currently included in the CBOE Global Markets application.
CBOE Global Market’s application for Bitcoin (BTC) ETF would have high chances of approval, given the SEC position regarding cryptos
Nevertheless, at the moment, the situation may have changed, as the director of corporate finance of the US Securities and Exchange Commission, William Hinman, publicly stated on June 14th that Ethereum (ETH) and Bitcoin (BTC) would not be categorized or ruled as securities.
The other reason why CBOE Global Markets’ application is likely to be accepted is that the offer of shares is targeted to a corporate and/or high-income market, given that, as the document issued by the SEC states, each stock would be worth 25 Bitcoin (BTC), approximately $170,000 at the current BTC trading price against the USD.
Also, in March, CBOE Global Markets President, Chris Concannon, declared that ETFs are the logical next stage in Bitcoin (BTC) development after futures contracts have been finalized.
Jackson Bey was born and raised in Lethbridge Alberta but moved east when he was 22. Apart from running his own consulting firm. Jackson spends his time canoeing the many lakes of Ontario. As a financial journalist Jackson has published stories for CBC Business Online, as well as Buzz Feed and Motherboard. As a contributor to Billionaire 365, Jackson mostly covers markets and trade.