The Chicago Board Options Exchange (CBOE), is making waves again in the crypto world. In a move that will further legitimatize cryptocurrencies (if approved), the CBOE has applied for an Exchange-Traded Fund (ETF).
Overseen by the governing body, Securities and Exchange Commissions (SEC), multiple applications for a BTC based ETFs have been declined to date. It is widely believed that such an ETF is inevitable, and that it is simply a matter of time before one is approved. Most believe that approval will come after the SEC themselves provides further clarity on their stance towards the cryptocurrency market as a whole. With regards to BTC and ETH, this clarity was afforded when the SEC stated that they were not being viewed as securities.
The arrival of an ETF has been much heralded because of the potential influx of money it will bring to the market. Current investors in the market stand to benefit greatly, as the influx will push prices to new heights.
The proposal put forth by CBOE would see them providing customers access to shares in SolidX. This company would then invest in BTC via over-the-counter markets. This would allow BTC to be traded as a traditional stock. In going this route, the services provided would be insurance backed. This is important to alleviate fears of the oft heard hacks, and private key losses.
The full ETF application can be found HERE.
This isn’t the first time CBOE has played the role of trailblazer in the crypto world. They were one of the first to offer BTC futures contracts in Q4 of 2017. Upon launching the contracts, the market experienced an unprecedented run-up to nearly $20,000 / BTC. Ironically, the futures contracts have also been suspected to be the cause of the subsequent bear market being experienced. Going on month 8, the tides finally appear to be turning, with prices stabilizing, volume minimizing, and positive news such as possible ETFs.
News of the CBOE’s application for an ETF comes only weeks after the Winklevoss twins were approved an ETF related patent. On June 19th, they were awarded a patent for a new firm dealing in ETP’s called ‘Winklevoss IP LLP’. This helps to lay the groundwork with the assumption of eventually being awarded ETF approval. It also marks the 7th patent blockchain related patent awarded to the twins in the last year.
Between the relentlessness of the CBOE and likeminded entities, a BTC ETF seems inevitable at this point. With the declaration of BTC and ETH not being securities, the SEC seems poised to grant approval in the near future. When this happens, look for a multitude of application to be put forth. Once the ice is broken, and the first is achieved, the flood gates allowing institutional money into the industry will be opened even further.