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Wednesday, April 21, 2021

Trailblazer Bitcoin ETF In U.S., Cboe Seeks SEC’s Approval

Cboe Global Markets is seeking approval from the U.S. Securities and Exchange (SEC) to enlist and trade shares of what could be the first Bitcoin ETF (Exchange-Traded Fund) in the U.S.

According to recent reports, Cboe filed a proposal this Monday with the U.S. Securities and Exchange Commission to seek the green signal for the VanEck Bitcoin Trust. The filing mentions that the market operator wishes to “build on” the earlier VanEck model mentioned in the S-1 filing. They further announced that Cboe’s plan represents the “next steps” in building the very first U.S. Bitcoin ETF.

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VanEck Associates Corp., an investment firm, had applied to kick-start a Bitcoin ETF to track the largest cryptocurrency. This application was filed in December 2020 and proposed the formation of the ‘VanEck Bitcoin Trust.’ Reports suggest that it is at least the third time since 2018 that Cboe has paired with VanEck to seek fund approval from the SEC.

Higher Scope Of Approval For Bitcoin ETF

Cboe further mentioned in its filing that the entire ecosystem of cryptocurrency has “progressed significantly.” It also cited other products that have already invested in the digital coin, alluding to the urgent need for a regulated custodial service to manage digital currency and trading.

The U.S. SEC has so far refrained from approving a Bitcoin ETF, by highlighting issues like market volatility and thin liquidity to industry manipulation. This can be said with conviction because an earlier attempt by Cboe was crushed by the U.S. SEC. Cboe had made this attempt in January 2019 that was later withdrawn owing to the concerns stated above.

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However, the crypto market has increasingly become more robust after the entry of big names and institutional investors. They have amassed a huge pile from the market recently. But this time there seems to be more hope for a Bitcoin ETF as President Biden’s nominee to lead the SEC, Gary Gensler, is seen as potentially more sympathetic to crypto than his former colleagues.

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