The U.S. Securities Exchange Commission [SEC] has received an application for a Bitcoin ETF license from CBOE Global Markets. The license would enable even greater institutional investors to invest in Bitcoin.
SEC requested comments on the application on 26th June. The proposal will only be trading with SolidX Bitcoin Shares. Each share will be worth 25 Bitcoin. This will enable consumers to see the trading options only by the first quarter of 2019 upon approval.
In the past, the SEC has taken a rather hard stance on crypto-backed funds. Many license applications have been rejected. Two applications filed by VenEck SolidX Bitcoin Trust were rejected in March of 2017. The rejection took place on account of the violation that the cryptocurrency market was wholly unregulated.
The statement released by SEC at the time stated:
“Based on the record before it, the Commission believes that the significant markets for Bitcoin are unregulated. Therefore… the Commission does not find the proposed rule change to be consistent with the Exchange Act.”
The CBOE application, however, may stand a higher chance of getting approved as the SEC recently declared that it does not classify Ethereum and Bitcoin tokens as securities. This made defining the coins easier on the market and the local regulators. Unregistered securities are not an issue as the SEC has decided that they will not be regulating Bitcoin.
Compared to other countries, however, the U.S. still stands far behind in terms of their regulatory measures. Additionally, Europe’s biggest exchange-traded funds [ETF] trader recently announced that they are now starting market making on Ethereum and Bitcoin ETNs.
The approval of this license application could open the door for other cryptocurrencies to become traceable as ETFs as well.
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