Cboe Calls on SEC to Give Crypto ETFs a Chance By Cryptovest

Cboe Calls on SEC to Give Crypto ETFs a Chance

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    <p>The Chicago Board Options Exchange (CBOE) has despatched <a href="http://www.cboe.com/publish/ComLet/20180323.pdf" target="_blank">a letter</a> to the US Securities and Exchanges Commission (SEC) and requested it to not take a stand in opposition to Bitcoin- and cryptocurrency-related exchange-traded funds (ETFs) on condition that they're fairly the identical as common ETFs, which monitor commodities.</p>

Early this 12 months, the SEC stated that opening the door for ETFs needs to be preceded by addressing “significant investor protection issues.” The regulator was involved about how the ETFs could be priced, saved, and guarded.

Cboe’s letter, which was signed by firm president Chris Concannon, famous that “the vast majority of these concerns can be addressed within the existing framework for commodity-related funds related to valuation, liquidity, custody, arbitrage, and manipulation.”

The change operator is assured that ETFs would offer buyers with a extra handy and clear means of buying and selling cryptocurrencies than the spot market method.

However, the SEC just isn't on the identical wavelength as Cboe. The regulator is anxious concerning the excessive volatility of Bitcoin and cryptocurrency costs, the current hacker assaults on crypto exchanges, and the dearth of concordance amongst governments relating to cryptocurrencies. The SEC has already rejected dozens of proposals for ETFs, together with Cboe utility to launch several such funds.

Cboe steered in its letter the regulator ought to assess every crypto fund individually, analyzing the merchandise on a case-by-case foundation.

The change operator famous that the Bitcoin and crypto markets have been liquid sufficient to help associated funds.

“As the volumes continue to grow, especially on regulated US markets, the overall spot bitcoin market looks more and more like a traditional commodity market and Cboe continues to believe that the spot market is sufficiently liquid to support a bitcoin ETP [exchange-traded product].”

In December, Cboe efficiently launched Bitcoin futures contracts, however they're regulated by the Commodity Futures Trading Commission.

This article appeared first on Cryptovest

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