CBOE Global Markets Inc, filed an application with the United States Securities and Exchange Commission (SEC). Specifically, requiring approval to list and trade your Bitcoin ETF. Which goes by the name of Wise Origin Bitcoin Trust.
In fact, the filing was made on May 10 and it remains to be seen how the SEC will look at it this time. The CBOE made a filing a few years ago, but the SEC did not approve that filing.
It should be noted, the agency has an initial period of 45 days to make a decision on the ETF application.
To recall, Wise Origin, a fund affiliated with Fidelity, first applied for the Bitcoin ETF with the SEC in March.
Currently, the SEC is considering three other Bitcoin ETF applications, submitted by VanEck. Kryptoin and WisdomTree.
CBOE seeks SEC approval
To this end, in its filing of Form 19b-4, the CBOE referred to its exposure in 2016. And it recognized that the Bitcoin trading industry was underdeveloped at the time, with no regulations surrounding it.
Also, acknowledge that things have changed over the years. And that Bitcoin has been increasingly adopted among major investors during this period.
Additionally, the presentation also points out various regulatory changes and approvals that have been made in the crypto world over the past few months. What has put Bitcoin trading under the regulatory arena.
To better understand, 19b-4s are rule change proposals submitted by stock exchanges, which would need official SEC approval. To change your listing rules for listing and trading the Bitcoin ETFs in question.
Basically, when a 19b-4 is filed, the SEC has 45 days to evaluate or extend its review period. Up to a maximum of 240 days.
Therefore, the CBOE has applied to the SEC for approval of its ETF as it would provide a strong and regulated instrument for investors and companies to trade Bitcoin.
Generally, these types of regulatory approvals take time to get approved. But considering the vision you have Gary Gensler the new SEC chairman on cryptocurrencies and the need for its regulation, the crypto community would closely follow this presentation and its progress. Waiting for a favorable ruling.
In fact, Gary Gensler, He said to Congress last week that: «Cryptocurrency Market Could Benefit From Greater Investor Protection».
Specifically, many exchanges that trade Bitcoin futures have emerged in recent years and these have seen increasing volumes in recent months. It is natural, that the exchanges, who are not yet dealing with Bitcoin futures, observe this and feel that they are missing something.
For their part, proponents of Bitcoin ETFs claim that such a product would open up Bitcoin to a wider range of potential investors. That is, those who are wary of investing in Bitcoin directly.
In conclusion, it is clear that CBOE is also looking to join, in order to get its share of the trading volumes. And this would be a huge boost for the Bitcoin and cryptocurrency community as it would lead to even more widespread adoption.
By way of closing, with a great interest generated in Bitcoin and in cryptocurrencies in general. The SEC is expected to be more favorable this time. What do you think about it? Let me know in the comment box.
I say goodbye with this phrase from Jorge Bucay: «The road marks a direction. And a direction is much more than a result».