CBOE files Bitcoin ETF with US Regulator SEC


CBOE files Bitcoin ETF with US regulator SEC, thus making yet another step towards establishing its wide presence in the market. The company claims that it will provide the top level security for its users.

10 July, AtoZ Markets The Chicago Board Options Exchange (CBOE), the first company to launch the Bitcoin Futures contract during last year, is now taking another step forward. Reportedly, the company has filed for a Bitcoin-based exchange-traded fund (ETF) with the US securities regulator, the Securities and Exchange Commission (SEC).

CBOE files Bitcoin ETF with US Regulator SEC

As per the official release from the SEC, the filing is dated back to June 20, 2018. The CBOE Bitcoin ETF is expected to allow for over-the-counter (OTC) trading for accredited investors. It will also provide them with the complete insurance and security. 

The application asks for a Bitcoin-based ETF to list and trade BTC shares that are backed by the Vaneck Solidx Bitcoin Trust. The filing document also mentions that CBOE will only invest in Bitcoin on behalf of the investors. The document reads:

 “According to the Registration Statement, the Trust will invest in bitcoin only. The activities of the Trust are limited to issuing Baskets in exchange for the cash and/or bitcoin deposited with the Cash Custodian or Trust, respectively, as consideration; purchasing bitcoin from various exchanges and in OTC transactions; delivering cash and/or bitcoin in exchange for Baskets surrendered for redemption; maintaining insurance coverage for the bitcoin held by the Trust, and securing the bitcoin held by the Trust.”

CBOE Guarantees Maximum Protection

Reportedly, two other financial institutions have also applied for Bitcoin ETF – SolidX and Gemini. Moreover, a number of other ETFs filings from 2017 has been rejected from the SEC due to the lack of overseas regulations and some concerns of the price manipulations. 

Yet, some of the leading cryptocurrency markets in Asia have established regulatory frameworks that aim to promote the healthy environment in the crypto space. In South Korea, authorities have moved to relax the cryptocurrency related laws in order to collaborate with the G20 directives. 

This time, the SEC is presented with fully assuring filing from CBOE, claiming that the latter provides complete security to its investors:

“In addition to its security system, the Trust will maintain comprehensive insurance coverage underwritten by various insurance carriers. The purpose of the insurance is to protect investors against loss or theft of the Trust’s bitcoin. The insurance will cover loss of bitcoin by, among other things, theft, destruction, bitcoin in transit, computer fraud and other loss of the private keys that are necessary to access the bitcoin held by the Trust.”

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