CBOE, the world’s largest futures exchange, has filed for a bitcoin ETF with the US Securities and Exchange Commission (SEC), to make it possible for investors in the public market to trade bitcoin.
The official document filed by CBOE with the SEC stressed that the Trust, mentioning CBOE will only invest in bitcoin on behalf of investors. Basically, CBOE will operate over-the-counter (OTC) trades among recognized investors in the traditional finance market, while ensuring funds in bitcoin obtained by investors.
The document stated:
“According to the Registration Statement, the Trust will invest in bitcoin only. The activities of the Trust are limited to issuing Baskets in exchange for the cash and/or bitcoin deposited with the Cash Custodian or Trust, respectively, as consideration; purchasing bitcoin from various exchanges and in OTC transactions; delivering cash and/or bitcoin in exchange for Baskets surrendered for redemption; maintaining insurance coverage for the bitcoin held by the Trust; and securing the bitcoin held by the Trust.”
As of July, CBOE is one the three financial institutions with SolidX and Gemini to file for a bitcoin ETF with the US SEC. the other ETF’s were denied by the SEC in 2017 as a result of insufficient of overseas control and price manipulations. At the time, major cryptocurrency markets such as Japan and South Korea did not have practical control frameworks and policies in place to control the cryptocurrency market.
“The Winklevoss ETF proposal was rejected because the SEC found that the significant markets for Bitcoin tend to be unregulated overseas markets that are potentially subject to price manipulation. But this creates a chicken and egg problem. How do we develop well-capitalized and regulated markets in the U.S. and Europe if financial innovators aren’t allowed to bring products to market that growing domestic demand for digital currencies like Bitcoin?” said CoinCenter executive director Jerry Brito at the time.
Ever since the international cryptocurrency industry has significantly evolved in almost every aspect. The Japanese government is still at the front of international cryptocurrency control, leading the G20 to unite controls for crypto exchanges and investors.
Financial authorities of South Korea, who earlier was hesitant towards controlling the cryptocurrency market due to the fact that they feared local investors might detect it as a drive to legalize the crypto exchange market, also concluded its plans to recognize crypto trading platforms as fully regulated financial institutions.