The Chicago Board Options Exchange (CBOE) Global Markets has filed for an application to the U.S. Securities and Exchange Commission (SEC) to begin trading Bitcoin Exchange-Traded Fund (ETF’s).
Previously, SEC has strongly rejected any Bitcoin-ETF applications. However, bearing in mind that the current application was filed after SEC confirmed it does not classify bitcoin and ethereum as securities, a positive outcome could be on the cards.
According to documents published by SEC, bitcoin shares will be backed by a blockchain firm SolidX and VanEck asset management company. The fund will trade in SilidX Bitcoin Shares, and its assumed that the price of one share will stand at 25 BTC. Even if CBOE receives a positive response right away, the bitcoin-ETF will not be launched before the first quarter of 2019.
Earlier in July 2016, SolidX Partners Inc has filed its own application for the launch of bitcoin-based ETF. It was assumed that the fund will be traded on the New York Stock Exchange (NYSE), but in March 2017 SEC has rejected the bid. In December of 2017, IOE also forwarded to the Commission applications for policy changes, allowing in the future to launch six ETF.
An approval by SEC would indicate an intent to move towards more liberal cryptocurrency legislation as is the case in some other countries around the world.
Also this new application would test the recently introduced regulation by SEC, which is aimed at simplifying the process of bringing new exchange-traded funds (ETF) to the market. The changes will mean that a special permit form the regulator will no longer be needed.
In addition, Arthur Hayes, Co-Founder & CEO of BitMEX, assured that bitcoin’s is sure to rise to $50,000 by the end of the year. According to Hayes it would depend on a widespread implementation of a regulated ETF, an investment fund that much like stocks can be traded on the exchanges.
By Ekaterina Ulyanova