The Chicago Board Options Exchange (CBOE) hopes to live on the showtime USA commutation to listing a Bitcoin ETF, an exchange-traded fund that tracks the toll of bitcoin futures contracts.
CBOE Files to List Bitcoin ETF
According to documents posted on the commutation operator’s website, CBOE filed several proposed dominion changes amongst the USA Securities as well as Exchange Commission (SEC) that would permit the commutation to listing half dozen Bitcoin ETFs on its trading platform.
Specifically, CBOE seeks to listing Bitcoin ETFs from fund providers First Trust, GraniteShares, as well as REX. None of these funds volition concord bitcoin directly; rather, they volition merchandise futures contracts, important that their functioning may diverge significantly from that of the property itself. Notably, each of these fund providers has filed to utilisation a “short” Bitcoin ETF that volition runway the inverse of the index, enabling investors to earnings when bitcoin futures reject inwards value.
Exchanges Await SEC Rulings
CBOE was the showtime USA commutation to listing bitcoin futures, beating out beau Chicago commutation CME past times a sum week. Exchange executives select already hinted that they promise to launch a menage unit of measurement of cryptocurrency derivatives products, making it clear that the commutation desires to seat itself at the cutting border of the decentralized fiscal revolution.
But spell CBOE was able to draw the rabbit out of its chapeau as well as instruct the showtime commutation to listing bitcoin futures, it faces strong contest inwards the race to convey the showtime Bitcoin ETF to market. Intercontinental Exchange (ICE), the operator of the New York Stock Exchange (NYSE), has already filed amongst the SEC to listing 2 of ProShares’ proposed Bitcoin ETFs on NYSE Arca.
Nevertheless, although exchanges are jockeying to listing the showtime Bitcoin ETFs, the SEC has withal yet to betoken whether it volition approve these retail-friendly investment products. SEC regulators select been relatively accommodating to the burgeoning cryptocurrency industry, but bitcoin’s present volatility may brand them hesitant to permit fund providers to roll cryptocurrencies inwards products targeted at Main Street investors.
