Cboe Strongly Asks SEC to Allow Bitcoin ETFs to Enter the Financial Market

Cboe Global Markets, Inc. (Cboe), one of the largest exchanges in the world, urged in a letter the U.S. Security and Exchange Commission (SEC) to clear the way for Bitcoin exchange-traded-funds (ETFs) which are trying to join the financial market.  

Chris Concannon, President and COO of the Cboe, said on Friday in a letter to the SEC, published online Monday:

"Cboe encourages the Commission to approach Cryptocurrency ETPs holistically and from the same perspective that it has historically approached commodity-related ETPs."

Dalia Blass, director of the SEC’s division of investment management, expressed a negative response to a number of bitcoin ETFs earlier this year. In a letter to two U.S. trading companies, she pointed out the risks concerning crypto coin ETFs, such as volatility, liquidity, manipulation, arbitrage, and custody.

In a recent letter, Concannon gave a detailed explanation of each point of SEC’s objections. He also claimed that an ETF would ensure a more transparent and accessible way of earning digital currencies than the traditional spot market. Furthermore, he assured that the company dealing with cryptocurrency exchange has taken a tough approach to detect and prevent manipulation in the bitcoin futures market.

However, crypto trading volumes in bitcoin futures remain low, the President of Cboe expects that it will jump soon as high as any other futures at the time they were included in ETFs.