Well-known crypto influencer, Crypto Rand, tweeted that Chicago Board Options Exchange (CBOE) has officially filed to list shares of VanEck’s bitcoin exchange-traded fund (ETF).
“BREAKING: CBOE Futures Exchange Submits SEC Application to Launch a #Bitcoin ETF.”
In a press release, CBOE stated:
- “CBOE filed a Form 19b-4 Monday, formally announcing its intention to list and trade shares of the VanEck Bitcoin Trust. The form kicks off the legal review period that could lead to the first bitcoin ETF in the U.S.”
What Does The Process Look Like?
The SEC will be reviewing the application before the first 45-day clock begins. Within these 45 days, the SEC has to either approve or disapprove the application or extend the review period. The SEC can extend this review period by 240 days before it has to make a final decision.
A Rocky Past
Historically, the SEC has been very reluctant in greenlighting a regulated ETF. The Gemini Exchange and Van Eck themselves had repeatedly presented various Bitcoin ETF proposals, but they have all failed to hit the mark. A greenlit ETF could potentially shoot up institutional investor involvement in Bitcoin. However, things may be different this time around.
An Optimistic Sentiment
Not only has Bitcoin gained more credibility due to heavy investments by Tesla, MicroStrategy, and Square, but the general sentiment with financial regulators has improved by a significant amount. Firstly, north of the border, the Ontario Securities Commission (OSC) had greenlit a Bitcoin ETF application from financial services company Purpose Investments Inc. Secondly, the current SEC chair, Gary Gensler, is known to be crypto-friendly.
CBOE also pointed this overall positive sentiment in their statement:
- “While a bitcoin ETF does not currently trade within the U.S., Canadian regulators have approved multiple bitcoin ETFs over the past month, with one seeing close to $1 billion invested by retail traders within its first few days.”
Bloomberg ETF analyst Eric Balchunas also noted that the approval of a Canadian ETF is “likely a signal that the SEC will approve one in the U.S. this year as well.”
However, Willy Woo has reminded his followers to curb their enthusiasm.
- “Will Cboe’s Bitcoin ETF be approved? Industry generally believes that if the US Bitcoin ETF is approved, the price of Bitcoin will rise to new heights. But with the current attitude of the Democratic, the approval may not seem high. Cboe applied for Bitcoin ETF as early as 2018.”