Cboe Global Markets Filing Reignites VanEck’s Bitcoin ETF
The global equities and derivatives exchange, Cboe Global Markets, proposed a request to the Securities & Exchange Commission to list and trade VanEck’s bitcoin ETF shares. The firm’s proposal revive’s VanEck’s journey to introduce an ETF connected to Bitcoin in the US.
A spokeswoman from Cboe said in an email to The Block that,
“Our filing builds on VanEck’s earlier S-1 filing from December 30 and represents the next steps in bringing what could be the first U.S. bitcoin ETF to market.”
Canada approved two Bitcoin ETFs that were launched with a lot of fan following. The Purpose Bitcoin ETF quickly raised above $400 million in assets under management after launching late in the last month.
JPMorgan noted “A pretty strong start” message to the clients on Monday morning.
It is not yet confirmed when will the US regulators approve a bitcoin ETF. However, Cboe is hopeful as it noted that it “believes that approval of a bitcoin ETF could provide investors access to bitcoin exposure through a transparent, regulated vehicle.”
Here are a few lines from Cboe in the filing for the product:
“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. The Sponsor has carefully selected the Custodian, a trusted company chartered and regulated by NYDFS, due to its manner of holding the Trust’s bitcoin.”
The Chicago exchange operator made an announcement last year about its intentions to enter the bitcoin market through a data product. During this time, the organization told The Block that the business may lead to new indexes tied to bitcoin and tradable products. The firm sunset its bitcoin future product in 2019. The product was initially launched in 2017.
From a recent episode of The Scoop, Bloomberg’s ETF whisperer, Eric Balchunas said that it’s only a matter of time before SEC agrees to such a fund. He said “I think it’s just a matter of the SEC coming around, and then once they come around mentally, I imagine it will happen pretty quickly. But again, I’m not in that bubble. I’m not a regulatory analyst. That’s just my sense from talking to people.”
