Will CBOE ETF Bitcoin Proposal be approved?

Earlier this week, CBOE ETF Bitcoin proposal has been filed with the US regulator SEC. Now, markets are speculating whether the regulatory body will approve or disapprove the proposal.

13 July, AtoZ Markets Bitcoin community has seen a lot of changes since the rejection of the Winklevoss Twins’ proposed Bitcoin ETF earlier last year. Then, at the end of 2017, the approved US CBOE Bitcoin futures have driven the price of this leading cryptocurrency to $20K. 

Will CBOE ETF Bitcoin Proposal be approved?

As you might know, earlier this week, the CBOE has filed for a Bitcoin-based exchange-traded fund (ETF) with the US securities regulator, the Securities and Exchange Commission (SEC). The notice has been published earlier this June. The page 51 of the document reads:

“Within 45 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding[…].”

This implies that the tentative date for the decision of the regulator falls on Friday, August 10. However, a 45-day extension is still an option, which means that the final decision should come no later than September 24.

Below, we discuss three reasons why the CBOE Bitcoin ETF proposal might be approved by the SEC.

1. Bitcoin price and market cap 

Back in March 2017, a lot of people in the crypto community did not have a lot of belief that Winklevoss Twin’s COIN Bitcoin ETF will get approved. Following the rejection, the price of BTC has dropped to under $1000 from around $1,350.

Today, the price of Bitcoin stands at $6,252.74 according to the data available on coinmarketcap.com. Plus, the total market cap of Bitcoin is more than $100 billion now. Such a figure is already too big to be ignored by the global regulators. 

2. Traditional and institutional investors’ demand

Normally, traditional investors have been primarily avoiding the investments into cryptocurrencies. However, now, a number of cryptocurrency exchanges are offering some custodial services to their clients. As a matter of fact, custodial services are appearing in demand for institutional investors. 

3. Regulators provide clarity

Another key reason for last year’s ETF rejection was that Bitcoin markets were largely unregulated. The rejection statement stated:

 “Based on the record before it, the Commission believes that the significant markets for bitcoin are unregulated.”

However, this year, some of the big banking institutions, such as Goldman Sachs and JP Morgan, have commenced trading Bitcoin Futures. Moreover, earlier last month, the US regulator SEC has provided more clarity for the cryptocurrency markets. The watchdog has stated that Bitcoin and other decentralized altcoins will not be regarded as securities. 

In conclusion

The above three reasons suggest that financial institutions and authorities are now looking at cryptocurrency market with a certain level of curiosity. According to some of the online reports, a regulated exchange-traded fund would definitely help some of the organizations to tap into this nascent market. 

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