CBOE Resubmits ETF Proposal for Review
About a week after the Van Eck ETF proposal was pulled out, another one was filed, further delaying the decision date.
One of the more prominent exchange-traded fund (ETF) proposals, the CBOE Van Eck investment vehicle, is back in the game with a renewed filing, just days after it withdrew its application with the US Securities and Exchange Commission. The move delays the deadline for a decision once again delayed but renews hope of a Bitcoin ETF getting approved.
Based on the description in the filing, the investment vehicle appears to be geared toward larger clients.
“With an estimated initial per-share price equivalent to 25 bitcoin, the Shares will be cost-prohibitive for smaller retail investors while allowing larger and generally more sophisticated institutional investors to gain exposure to the price of bitcoin through a regulated product while eliminating the complications and reducing the risk associated with buying and holding bitcoin,” the market operator explained.
One of the chief attractions would be the insurance of all Bitcoin (BTC) held within the fund. While BTC wallets are seen as generally secure, hacks and exploits have happened in the past, so the underwriters are looking to mitigate the risk of loss.
The trading of a Bitcoin ETF would also happen under the regulation of the Commodities Futures Trading Commission, which generally defines digital assets as commodities, not currencies. The ETF platform would be far more restricted compared to existing digital asset exchanges, which have no oversight on the types of trades or volatility.
The Van Eck ETF was also compared to the Bitcoin Tracker investment tools traded on NASDAQ Nordic.
“In May 2015, the Swedish FSA approved the prospectus for “Bitcoin Tracker One”, an open-ended exchange-traded note that tracks the price of bitcoin in U.S. dollars. The Bitcoin Tracker One initially traded in Swedish krona on the Nasdaq Nordic in Stockholm, but is now also available to trade in euro. The Bitcoin Tracker One is available to retail investors in the European Union and to those investors in the U.S. who maintain brokerage accounts with Interactive Brokers,” CBOE pointed out.
The renewed potential for a Bitcoin ETF launch failed to boost BTC market prices, and the asset slid ahead of the weekend to around $3,434.