Cboe applies to list the first Bitcoin ETF in the United States
In the last days of the end of 2020, the investment company “VanEck” submitted a request to the US Securities and Exchange Commission “SEC” to accept the listing of the “VanEck Bitcoin Trust” on the stock exchange, as this “ETF” follows the price of Bitcoin and is traded on the stock exchange .
Cboe has submitted an offer to the Securities and Exchange Commission to list and trade Bitcoin in the form of an ETF.
According to what was stated in the deposit request from “Cboe” the following:
The fund is based on a previous "VanEck" presentation of the S-1The fund represents the next steps in introducing what would be the first US ETF into the market.
VanEck ETF allows transfers between shares and Bitcoin.
The twins, "Cameron" and "Tyler Winklevus", founders of the "Gemini" cryptocurrency trading platform, first proposed an "ETF" in June 2016.
The Securities and Exchange Commission (SEC) rejected the proposal at the time, and continued to reject it until now.
Since then, several companies, including VanEck and Cboe, have submitted proposals to the regulatory agency, for rejection by the SEC.
An ETF is an investment fund that trades like stocks, which means that people can buy or sell it as long as the market is open.
Mutual funds and other investment products work differently, with traders only able to enter at the end of the day.
The Bitcoin ETF tracks the price of Bitcoin, allowing interested investors to take exposure to the cryptocurrency without the hassle of keeping it themselves.
Meaning, traders buy stocks, not bitcoins, but rather stocks that are based on the value of Bitcoin.
In general, a bitcoin ETF may be an investment tool accessible to everyone, unlike “Grayscale” funds, which are directed and open to approved investors only, with a minimum investment of $ 25,000, and buyers are not allowed to trade their shares for six months.
While US regulators have not yet approved a Bitcoin ETF, the regulatory landscape is changing.
Last month, Canada became the first country in North America to welcome a Bitcoin ETF, as it agreed to list it on the exchange.
A Bloomberg analyst told that after making $ 165 million in trading volume on the first day, this is the most successful ETF launch ever.
The US is a much larger market than Canada, which provides some hint as to why Cboe and VanEck are continuing to push proposals forward.
A spokesperson for "Cboe" stated:
Cboe believes that the approval of a Bitcoin ETF can provide investors with access to and exposure to Bitcoin through a transparent and regulated medium.