Cboe BZX Exchange Files Proposal To List VanEck Bitcoin Trust ETF


Cboe files for Bitcoin ETF listing

Cboe BZX Exchange Files Proposal To List VanEck Bitcoin Trust ETF

A Bitcoin ETF approval from the US Securities and Exchange Commission (SEC) is looking closer than ever after equities market operator Cboe BZX Exchange filed a proposal to list and trade the VanEck Bitcoin Trust ETF.

Tellingly, the VanEck Bitcoin ETF hasn’t been approved as yet, and was only filed in late December 2020. The proposal is still under review with the SEC and could take months for a decision either way.

However, with CBoE BZX Exchange filing this proposal, is it giving away a badly held secret? The first Bitcoin ETF is on the way for the US markets.

Are We About To See The First US Bitcoin ETF?

According to the filing, the exchange proposes to list and trade shares in the VanEck Bitcoin Trust, in what it says is now a ‘significantly evolved’ market compared to previous filings.

CBoE BZX Exchange Files Proposal To List VanEck Bitcoin ETF

The Cboe filing says it ‘builds on VanEck’s earlier S-1 filing’ and ‘represents the next steps in bringing what could be the first U.S. Bitcoin ETF to market.’

The filing discusses Bitcoin’s recent history, and claims the amount of publicly traded market participants in the space, and the number of licensed and regulated custodial services clearly makes it a different market today.

‘The digital assets financial ecosystem, including Bitcoin, has progressed significantly. The development of a regulated market for digital asset securities has significantly evolved, with market participants having conducted registered public offerings of both digital asset securities14 and shares in investment vehicles holding Bitcoin futures. Additionally, licensed and regulated service providers have emerged to provide fund custodial services for digital assets, among other services.’

The filing also backs its case for a Bitcoin ETF, mentioning the US Office of the Comptroller of the Currency (OCC) allowing federally-chartered banks to provide custody services for digital assets.

Bitcoin Maximalist Shop

Added with the notoriously strict NYDFS granting more and more BitLicences to companies in the Bitcoin space, and it’s clear the regulatory hurdles that hindered Bitcoin’s growth are now stepping aside.

Conservative US Usually Follows Canada’s Lead

When Canada launches a trading product, the US usually observes and then pounces. Canada even launched the first ever ETF even though it was an American idea.

The biggest Bitcoin fund, Grayscale (GBTC) is also traded out of Canada. As well as this, we now we have two Bitcoin ETFs in Canada.

The SEC will have seen the immediate success of those, so there can be no doubting there is no desire for a Bitcoin ETF, and now the SEC institutional buddies at Cboe have applied, a yes is far more likely now.

Given that there are ETFs trading on other smaller assets, the SEC is running out of excuses, and will likely follow its northern neighbor, according to Bloomberg ETF Senior Analyst Eric Balchunas.

VanEck apply for another Bitcoin ETF

‘Canada is right up there,’ argues Balchunas. ‘It’s almost like a neighboring state, and the ability for people to talk about it in US hours. It just becomes much more present for the SEC… and its why the SEC will follow Canada because we’re so close.’

Added the success of the Purpose Bitcoin ETF, which was the biggest traded ETF by volume of any ETF on its first day of trading, on the Toronto Stock Exchange.

Things have calmed down, but after just two weeks of trading the Purpose ETF is worth over $657 million, and the desire to get exposure to Bitcoin is clear.

No doubt with the Bitcoin market maturing, and more regulated markets and custodians are in place, the SEC is likely to move sooner rather than later.

Not forgetting, Cboe is one of its own, so the SEC is more likely to grant the wishes of their buddies in Chicago first.

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