CBOE: The release of Bitcoin futures will once again drive the emergence of Bitcoin ETFs

nBankruptcy comment: CBOE’s bitcoin futures products have been officially launched last weekend, a move that marks the cryptocurrency further into the mainstream financial world, this emerging asset will receive more attention and adoption. In the meantime, CBOE also revealed that it would collect and analyze the data through the operation of this new product, hoping to hold dialogue with the SEC, promote the discussion on the listing of the Bitcoin ETF once again, and intend to continue developing other digital currency futures products.n
nTranslation: Inan
A new era has arrived with the CBOE formally launching its first Bitcoin futures contract.n
The futures product began trading at 5 pm Central America time on December 10, allowing investors access to the cryptocurrency market without the direct sale and purchase of bitcoin.n
The listing of this contract is a hallmark of the maturity of the cryptocurrency ecosystem, but other milestone developments have occurred this year, including the upcoming Bitcoin Futures contract by the CME Group.n
More importantly, it can redirect another effort to bring liquidity and mainstream status to cryptocurrencies, namely developing the Bitcoin Exchange Traded Funds (ETFs).n
Edward Tilly, chief executive of CBOE, said in an interview that his exchange may use the information collected from future deals to suggest to the Securities and Exchange Commission (SEC) to allow the listing of ETFs and ETNs linked to Bitcoin.n
Tilly told CoinDesk: “All this information will be used to build the next step,” adding:n
n”A possible follow-up is the development of bitcoin ETFs and ETNs, which will require SEC approval.”n
The second round of workn
There are two reasons for the CBOE CEO’s open discussion of the bitcoin ETF that deserves attention.n
The first is the money level. In this year’s bull market, global ETF assets climbed from $ 4.8 trillion at the end of last year to $ 5.3 trillion in October of this year.n
ETFs are tradable securities linked to an index, a commodity or a basket of assets that retail investors can buy. Bitcoin ETFs may be an attractive option for those on the rise due to the price hikes in encrypted assets, but their introduction has been hampered by the hassle and risk of storing and protecting them.n
The second reason may be even more important to this emerging crypto-asset market, which is not the first attempt to launch Bitcoin ETFs.n
Earlier this year, the SEC rejected the Gemini ETF offer. Founded by the Winklevoss Brothers and licensed by the CBOE for many years, the Bitcoin Exchange can provide bitcoin data in its just launched futures product. The SEC referred to the lack of other regulated bitcoin products and some other concerns.n
Now that some bitcoin futures regulated by the Commodity Futures Trading Commission (CFTC) have emerged and are in operation, everything may change.n
CBOE’s subsidiaries have previously worked hard to convince the SEC to reconsider its decision, Tilly said CBOE will conduct data analysis of the settlement process, liquidity and volatility of Bitcoin futures in order to discuss with the SEC.n
In any case, CBOE wants to do more with its new data partner.n
Tilly said: “This is not the end, but the beginning of our cooperation with the Gemini Trust. We attach great importance to this partnership.”n
More than just bitcoinn
For Tilly, no matter whether the SEC is willing to revisit the Bitcoin ETF, other business opportunities remain.n
After the Bitcoin futures contract is issued, CBOE will use Tilly’s so-called “benchmarking” to launch other contracts.n
The next step is to look at bitcoin futures contracts to issue what Tilly said could eventually become derivatives offered on futures contracts.n
He said that “although this product launch is not a month or two months later, but in a sense, bitcoin derivatives will make sense.”n
Tilly notes that other business opportunities are already “on the road”, including contracts to issue other cryptocurrencies. like he said:n
n”Although this is our first time working on bitcoin, this is not intended to discourage the development of other currencies.” The partnership with Gemini Trust will allow us to launch other digital currency products that meet the listing standards based on knowledge gained through the study of bitcoin products. “n

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