License application for Bitcoin ETF with SEC filed by the global CBOE markets
The US Securities and Exchange Commission UU (SEC) received a request from CBOE Global Markets to obtain a Bitcoin ETF license. The license will allow more institutional investors to invest in Bitcoin.
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The SEC requested comments on the request on June 26. The proposal will only be negotiated with SolidX Bitcoin shares. Each action will have a value of 25 Bitcoin. This will allow consumers to see marketing options only in the first quarter of 2019 once they are approved.
In the past, the SEC has taken a tough stance on cryptographically backed funds. Many license applications have been rejected. Two requests made by VenEck SolidX Bitcoin Trust were rejected in March 2017. The rejection took place due to the violation that the cryptocurrency market was not fully regulated.
The statement issued by the SEC commented at the time :
"Based on the previous record, the Commission believes that the important markets for Bitcoin are not regulated. Therefore ... the Commission does not find that the proposed rule change is consistent with the Exchange Law. "
The CBOE application, however, may have a higher probability of being approved since the SEC recently stated that it does not classify the Ethereum and Bitcoin chips as securities. This made defining currencies easier in the market and local regulators. Unregistered securities are not a problem since the SEC has decided that they will not be regulating Bitcoin.
The papers bestowed by CBOE with the SEC stressed that the Trust, relating CBOE, can solely invest in Bitcoin on behalf of the investors. primarily, CBOE can facilitate over-the-counter (OTC) transactions among licensed investors within the ancient monetary market, whereas securing the Bitcoin funds noninheritable by investors.
However, compared to other countries, the United States is still far behind in terms of its regulatory measures. In addition, the largest trader of European traded funds (ETF) recently announced that they are now starting to create markets in Ethereum and Bitcoin ETN.
The approval of this license application could open the door so that other cryptocurrencies can also be treated as ETFs.
Once a Bitcoin ETF is approved, an associate flow of latest capital from retail investors into the standard money market can arrive within the cryptocurrency sector, which can boost the worth and volume of the most digital assets.