The CBOE is at it again, trying to get another Bitcoin ETF approved by the SEC.
Except this time, they might actually have some success.
According to information published on the SEC's website, the CBOE has filed to partner with Van Eyck Investment and SolidX who filed for a bitcoin ETF several weeks back.
The interesting thing about this is that it looks as though the Van Eyck proposal might actually have a decent chance of getting approved, which is likely why the CBOE wants to partner with them.
Why does it look like this application might actually be approved?
For one, the fund will offer shares priced in terms of 25 bitcoin per share.
Which means that at current prices of just under $7k per bitcoin, each share would cost roughly $175k, which would severely limit the number of retail investors that could be involved.
Protecting retail investors was a goal stated by the SEC several times as it relates to cryptocurrencies and bitcoin.
Secondly, the fund will be fully insured.
Not a direct quote, but the document states:
The fund will be insured up to $25 million in primary coverage initially, as well as $100 million in excess coverage, with the ability for more coverage depending on the value of the bitcoin held by the fund.
(Source: https://www.whenmoon.co/cboe-may-finally-get-its-holy-grail-bitcoin-etf-by-2019-bitcoinist-com/)
Not to mention the fund will store crypto holdings in cold storage and take several significant safety precautions in terms of protecting assets.
How will the ETF operate?
More information about that can be found here in the initial application by Van Eyck:
https://steemit.com/bitcoin/@jrcornel/new-bitcoin-etf-application-may-actually-gain-approval
The fund will be physically backed, well as physically backed as you can be when dealing with a digital asset.
What I mean by that is that the fund will be backed with actual bitcoin as opposed to being tied to futures products like some ETF funds have proposed.
Which is what bitcoin investors want to hear because it would create actual demand for the underlying bitcoin as funds would go out and purchase bitcoin.
(Source: https://www.whenmoon.co/cboe-may-finally-get-its-holy-grail-bitcoin-etf-by-2019-bitcoinist-com/)
The CBOE says that they would acquire the bitcoin needed for the fund via OTC trading.
Again that also seems to solve one of the issues the SEC has in regards to bitcoin pricing.
IE, it trades for different prices depending on what part of the world you are trading in.
If approved, they anticipate the ETF being available to investors by the first quarter of 2019.
There you have it folks, we may have a bitcoin ETF as soon as Q1 of 2019.
Stay informed my friends.
Image Source:
https://bitcoinist.com/cboe-bitcoin-etf-holy-grail-sec/
Follow me: @jrcornel
2019? Are you kidding me? 😩😩😩
Patience is a virtue! Or something like that...
They understand what is the right way to go
That is what they are hoping for sure.
I can wait. I know its only a matter of time.
That is the hope.
As good investors, they know that cryptomonedas is the future and they don't want to be left behind and without a cake cutter, @jrcornel. That's good for the market! The more support you get from bitcoin, the safer and more stable it will be. Pending. Greetings
The analysis you're doing is very encouraging, @j. Bitcoin needs the support of big companies and some governments that are playing with the kryptonite market. I think it's a great step forward and if you talk about 2019 as a definitive year, then we shouldn't wait and be on our guard. Greetings and thank you for sharing this information.
2019 should be a good year for crypto, perhaps even the rest of 2018 as well.
Your post is good your contant is good best of luck
What makes it good?
I like that some companies and economies are opening up to the kryptonite system. It is undeniably the economy of the future. There is no reason, after armoring itself very well, not to enter the economic contest knowing that this is what all economies are about: risk. Bitcoin is not the future. Bitcoin is the present and that present is already!
This is really impressive info...
Thanks
What is the most impressive thing about it?
yea @jrcornel, and now that custody has been solved bitcoin is nearing the run up to the moon...3....2.....1......charlie we have lift off...;-)
That is the hope. We need several custody solutions though, and likely a cheaper one than Coinbase currently offers.
Even with approval, consumers cannot expect to see trading options available until the first quarter of 2019.
VenEck SolidX Bitcoin Trust previously put in two applications for this matter, but they were rejected under the violation that the crypto market was entirely unregulated.
They have addressed several of the concerns brought up by the SEC. There is a halfway decent chance this latest application gets approved.
While in theory ETFs should lead to more interest and adoption in the space, it also brings in the likes who manipulate the stock market... take the good with the bad I guess.
I think there is already massive manipulation, more players would likely not make it worse.
Thanks for providing all the information regarding it now its all about how the people play with their patience its a game of nerves