738 Interactions, 4 today
CBOE is seeking to re-enter the crypto sector, filing to list the Bitcoin ETF proposed by asset manager Van Eck.
The world’s leading exchange holding company, Chicago Board Options Exchange, or CBOE, has filed a list of Bitcoin exchange-traded funds proposed by the asset manager, Van Eck.
CBOE filed Form 19b-4 requesting permission from the U.S. Securities and Exchange Commission to list the ETF on January 3. In the form, CBOE emphasises the benefits that the ETF would offer to retail investors over the spot markets of Bitcoin, including custody:
“Exposure to bitcoin through an ETP also presents certain advantages for retail investors compared to buying spot bitcoin directly. The most notable advantage is the use of the Custodian to custody the Trust’s bitcoin assets.”
While CBOE did not reveal who its custodian is, the document notes its custodian is “a trust company chartered and regulated by [the New York Department of Financial Services].”
Once the SEC has formally recognised that it is reviewing the application, the regulator has 45 days to deliver its verdict or to extend the assessment period. The SEC may extend its deliberation period up to 240 days before finalising its decision.
If authorised, the ETF will be the first crypto commodity sold by CBOE since February 2019, after which CBOE had stopped selling Bitcoin futures contracts. In December 2017, CBOE became the first owned financial institution in the United States to sell Bitcoin futures contracts, with the Chicago Mercantile Exchange just a few weeks away.
Van Eck filed an ETF Bitcoin for SEC approval in January. While Van Eck had previously filed for the BItcoin ETF in 2017, the firm also teamed up with SolidX—a blockchain company that has been trying to market the Bitcoin ETF since 2015—to file for the jointly issued ETF in 2018. The joint application was discontinued in September 2019, with the two companies parting soon afterwards.
However, Van Eck’s new complaint has been the focus of SolidX’s litigation, which Van Eck alleges has plagiarised their commodity.
Van Eck also filed an ETF follow-up to the performance of prominent crypto companies on January 21. The product will seek the price and output of the Global Digital Asset Stock Index—run by its subsidiary MV Index Solutions.
As of this writing, any crypto ETF product has yet to be approved by the SEC.