The CBOE’s Latest Gamble
So, here we are once again—like a cat that just can’t resist knocking things off the counter, the Chicago Board Options Exchange (CBOE), in collaboration with VanEck and SolidX, has decided to try its luck with the SEC over a Bitcoin (BTC) exchange-traded fund (ETF). This master class in bureaucracy was announced by VanEck’s digital asset strategy director, Gabor Gurbacs, on January 31. Fingers crossed, right?
What on Earth is an ETF?
If you’ve ever wondered if there’s a way to dip your toes into cryptocurrencies without doing the digital equivalent of skinny-dipping, here’s your answer: ETFs. These bad boys are investment tools that track a basket of assets, making it easier for investors to partake in the crypto buffet without having to pick their entrée. Simply put, they’re seen as a pathway to make cryptocurrencies more mainstream.
Why the Initial Withdrawal?
Before you start sharpening your pitchforks, let’s talk about why CBOE initially pulled its request. Just like that moment when you realize you’ve finished a season of your favorite show and now your life feels empty, CBOE hit the brakes on January 23. The reason? A government shutdown that made it hard for SEC to put pedal to the metal. Legal experts pointed out that the SEC wasn’t exactly firing on all cylinders due to some political shenanigans surrounding a border wall proposal. Talk about being stuck between a rock and a hard place!
The Delayed Dance with the SEC
When it comes to the SEC and this application process, delays are part of the dance. You remember the first filing, right? June 6, 2018. Then came a bunch of delaying tactics from SEC, like it just couldn’t make up its mind. As if trying to pick a Netflix movie, the commission kept pushing back its decisions, asking for more comments—and giving us the classic “we haven’t reached any conclusions” line. It was like watching a soap opera, and we were all rooting for a happy ending.
Mark Your Calendars!
Fast forward to December, and the saga continued. The proposed rule change was published in the Federal Register on July 2, 2018, which set the stage for a maximum review period culminating on February 27, 2019. So, circle that date if you’re planning to throw a “will they or won’t they” party for the Bitcoin ETF!
The Bigger Picture
In the grand scheme of things, each move from the CBOE plays into the larger narrative of cryptocurrency regulation. A Bitcoin ETF could create a sense of legitimacy for the crypto space, attracting more mainstream investors. Or, it could simply lead to more bureaucratic headaches. Either way, it’s a waiting game filled with popcorn-worthy drama!
+ There are no comments
Add yours