The Chicago Board Options Exchange (CBOE) has filed for an ETF license. According to registration documents filed at US Securities and Exchange Commission (SEC), CBOE is seeking the Bitcoin exchange-traded fund license so as to start trading in SolidX shares.
Could this be a potential game changer?
According to analysts, a licensed Bitcoin fund is likely to be a game changer in the industry. In a recent interview, John Hyland, head of Bitwise Asset Management said that a cryptocurrency ETF, is granted license by the SEC, the agency will have no ground to reject other applications.
The SEC has asked the general public to send their comment about the application. After approval, one share will trade for BTC 25.
Purpose of the investment
According to documents filed at the SEC, the exchange has rolled out investment so as to show the performance of Bitcoin prices, as well as reduce expenses incurred in Trust’s operation. If it successfully secures the license, CBOE plans to launch the fin next year.
The move comes at a time when there is growing interest in the cryptocurency sector among mainstream financial institutions. Recently, Lloyd Blankfein, the CEO of Goldman Sachs was quoted saying that it will be arrogance to completely dismiss Bitcoin. On the other hand, CFTC commissioner, Rostin Behnam referred to digital currencies as a “Modern Miracle”
The virtual currency sector is largely unregulated. The SEC has been coming up with mechanisms to ensure the safety of customers. After much consultation and debate, the commission recently determined that Bitcoin and Ethereum are too decentralized to be regarded as securities.
Additionally, SEC regulators in June revealed that they were developing an outline for new legislations. The legislation will regulate open-ended and low-risk ETFs for boosting innovation in the financial sector. This will be a boost to enterprises that are seeking to set ETFs in the future.
The VanEck SolidX application will allow Trust to sell shares to clients. The shares will go for 25 Bitcoin each. The application has been filed at a time when there was growing speculations from interested professionals.