CBOE has just come up with its submission of filing to the SEC, seeking approval for getting listed and trading of their Bitcoin ETF. It comes under the name of Wise Origin Bitcoin Trust.
The filing has been made on the 10th of May. It is yet to see how the SEC would view it this time. A similar kind of filing CBOE had also made a few years back. However, the filing did not get approval from the SEC. With its huge interest getting generated in Bitcoin and other cryptos, it can be expected that SEC might come up more favorably this time.
Many of the exchanges, which are dealing in Bitcoin futures, are having their surge over the last few years. These exchanges have witnessed surging volumes in the last few months. It is also pretty natural that exchanges, which do not deal with Bitcoin futures, can look at this and feel that they are missing out on something in the facilitation of their services.
Recently Coinbase, which is a major crypto exchange, has come up in the list of NYSE, generating a lot of buzz in the stock and crypto markets. It is quite clear that CBOE is looking to join the bandwagon so that it can have its own share of trading volumes. Hence, it would be a bigger boost for the bitcoin and crypto community, as it will lead to more mainstream adoption.
In their filing, CBOE has also referred to its filing in 2016 and also acknowledged that the Bitcoin trading industry was an underdeveloped one at that time, having no regulations regarding it. There was no kind of regulated offerings during that time. Hence, it would have become much more difficult for the SEC to make it a great area of faith at that time.
But the filing is also acknowledging that things have changed over the years. Now, bitcoins are getting more adoption among a major number of investors. This filing is stating that the notional volume in December 2020 for bitcoin futures at Chicago Mercantile Exchange was near about $28 billion in value. It is much greater than the volume of other exchanges like JP Morgan, Facebook, etc., which is only showing its growing interest in Bitcoin trading.
The filing is also noting the various regulatory changes, along with approvals, which have been made in the crypto world for the last few months. These are primarily the reasons behind bitcoin trading under the regulatory purview.
It also included the interest among various corporate entities such as insurance companies, financial services, etc., which have begun seeing bitcoin favorably. Thus, CBOE has requested the SEC for the approval of their ETF as it would offer a much stronger and regulated instrument for different investors and companies.
Generally, these kinds of regulatory approvals are taking their own time to get acceptance. However, it is considering the lenient view, which the current SEC Chief is having about crypto. Thus, this filing and its progress will have a closer watch by the crypto and bitcoin community to have a much favorable ruling.