Options Giant Cboe Applies for Six Bitcoin-Based ETFs

It’s been over two weeks since the largest U.S. options platform, the Chicago Board of Trade (Cboe), launched its bitcoin-based futures products. Now over the past week, the firm has applied for six individual exchange-traded funds (ETF) and is waiting for the U.S. Securities and Exchange Commission’s (SEC) approval.

With Bitcoin Futures Well Underway Cboe is Positive it Will be Approved to List Bitcoin-Based ETFs on the Bats BZX Exchange

Cboe joins the growing list of companies that are now optimistic U.S. regulators will allow bitcoin-based ETFs. Just recently news.Bitcoin.com reported on Vaneck, and Rex applying for ETFs with the SEC. Moreover, the New York Stock Exchange (NYSE) wants to list Proshares ETFs on the stock market as well. According to public filings with the SEC, the options exchange Cboe wants in on bitcoin ETFs too, and hopes to list six different type of products on the Bats BZX exchange.

The following ETFs are have been submitted to the U.S, regulator which include the Rex Bitcoin Strategy, and the Rex Short Bitcoin Strategy funds. Alongside this, Cboe has introduced four more funds called Graniteshares Strategy, Graniteshares Short, the First Trust Inverse, and the First Trust Bitcoin Strategy. The ETFs will not resemble the ETF product the Winklevoss have proposed to offer, but rather the Cboe ETFs will be directly correlated to its futures markets.

 

Cboe Planned to Reapply for the Bitcoin ETFs After Futures Contracts Built Liquidity

The application for the Cboe ETFs sent to the SEC department follows the two weeks worth of futures markets held on Cboe’s global market platform. Cboe’s CEO, Ed Tilly told the press on December 4 that they would apply for the ETFs once the futures markets were well underway. Mr. Tilly told Reuters at the time:

Once liquidity builds in the Cboe bitcoin futures contract and the exchanges are able to show how their oversight of the underlying market works, Cboe plans to reapply with the U.S. Securities and Exchange Commission to launch a bitcoin ETF.

In addition to Cboe’s markets, other competitors have entered the bitcoin derivatives space as well, as Ledger X has been processing bitcoin options for quite some time, and CME Group has recently launched its futures. Further in 2018 Nasdaq plans to list its own bitcoin-based futures products. Essentially, if there’s enough demand and firm’s like Cboe continue to show regulators they are practicing regular oversight the SEC may be more inclined to approve the recent bitcoin ETF filings.

Leave a Reply

Your email address will not be published. Required fields are marked *