CBOE Nudges SEC to Allow Bitcoin ETFs in New Letter
The first regulated US exchange to list bitcoin futures contracts has asked the Securities and Exchange Commission (SEC) to reconsider its hardline approach toward Bitcoin ETFs and other cryptocurrency-based exchange-traded products (ETPs).
In a letter dated March 23, CBOE President Chris Concannon addressed concerns raised that the SEC had raised in a January letter sent to investment industry trade associations.
Though he did not directly ask the SEC to approve a Bitcoin ETF or ETP, Concannon did encourage the agency to consider these products on a “case by case basis” rather than as an asset class as a whole.
Concannon then gave point-by-point answers to the SEC’s original letter, which raised five concerns about investor protection and cryptocurrency ETPs: valuation, liquidity, custody, arbitrage, and market manipulation.
Noting CBOE was the first regulated exchange to list Bitcoin futures, Concannon argued that the firm was “uniquely positioned” to comment on the issues surrounding cryptocurrency ETPs. Citing internal data, he said that the exchange operator expects that its Bitcoin futures volume will soon be comparable to that of other commodities when they began to be included in ETPs.
As CCN has reported, CBOE has made clear that it believes cryptocurrency ETFs and ETPs represent an area of significant future growth for the finance industry and that it intends to be on the cutting edge of this burgeoning field.
For now, though, the industry is stuck in a waiting game.
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