CBOE Seeks SEC Approval to List First Bitcoin Exchange-Traded Product in US

The Chicago Board Options Exchange (CBOE) global markets is seeking approval from the US SEC (Securities and Exchange Commission) to list shares of the VanEck’s Bitcoin Exchange Traded Fund (ETF).

On Monday, March 1, CBOE filed a Form 19b-4, thus formally announcing its plans to list and trade shares of the VanEck Bitcoin Trust.

Although CBOE filing begins the formal regulatory review process, the SEC still has to acknowledge that it is reviewing the application before the first 45-day clock starts. Within those 45 days, the regulator has to either disapprove or approve the application or extend the review period. The regulator can extend the review period up to 240 days before it can make a final decision. 

According to the filing, CBOE stated that investing in Bitcoin through an exchange-traded product would provide advantages to retail investors without the need to invest in the crypto directly. Storing Bitcoin safely is a major problem for investors; therefore, such a Bitcoin ETF would allow retail traders to access better custodial services.

Based on the filling, CBOE has become the latest attempt to launch such a product in the US. The SEC has historically rejected every Bitcoin ETF application in the US, including previous efforts made by VanEck.

In January this year, VanEck New York-based investment firm filed another application to launch a Bitcoin ETF through trading at the CBOE exchange.

The Time of Bitcoin ETF Has Come

Although a Bitcoin ETF does not currently trade within the United States, Canada’s main securities regulator has approved several Bitcoin ETFs over the previous months. Last month, Canada’s Purpose Bitcoin ETF became the world’s first exchange-traded fund of its kind, allowing investors efficient and easy access to the emerging asset class of crypto. Several asset managers in Canada are therefore rushing to launch their own Bitcoin ETFs. The approval of Canadian ETFs will likely indirectly put pressure on the SEC to approve one in the United States as well.