The world’s leading stock exchange, the Chicago Board Options Exchange, or CBOE, has submitted an application to list a Bitcoin-traded fund by asset manager Van Eck.
The CBOE filed Forms 19b-4 on January 3, which requires the listing of ETFs by the US Securities and Exchange Commission. In this template, the CBOE highlights the benefits ETFs can offer individual investors over Bitcoin spot markets, including guardianship:
“Accessing Bitcoins via ETP also provides certain benefits for retail investors over buying Bitcoin spot directly. The most notable feature is the use of a trustee to hold the trust’s bitcoin assets.”
While the central bank does not disclose the identity of the trustee, the document states that the custodian is “a trust company registered and regulated by the [New York City Financial Services Department].”
After the SEC has officially acknowledged that they are studying the application, the regulator has 45 days to make its decision or extend the evaluation period. The SEC can extend the debate period to 240 days before making a final decision.
If approved, the ETF will be the first cryptocurrency product CBOE has offered since February 2019, after which the CBOE will stop offering Bitcoin futures contracts. In December 2017, the CBOE became the first regulated financial institution in the United States to offer Bitcoin futures, beating the Chicago Mercantile Exchange by just two weeks.
In January, Van Eck sent to the Securities and Exchange Commission for approval of the Bitcoin ETF. While Van Eck previously applied for a BItcoin ETF in 2017, the company also teamed up with SolidX – the blockchain company that has been trying to bring the Bitcoin ETF to market since 2015 – to apply for an ETF that was released jointly in 2018. The order was withdrawn in September 2019, and the two companies split shortly afterwards.
However, Van Eck’s latest complaint was the subject of a lawsuit by SolidX, which claims that Van Eck stole her product.
Van Eck also applied for an ETF that tracks the performance of well-known crypto companies on 21 January. The product will target the price and performance of the Global Equity Index for Digital Assets, which is operated by the subsidiary MV Index Solutions.
At the time of writing, the SEC has not yet approved any ETF crypto product.