Tuesday, March 27, 2018 08.12AM / By Aaron Wood for CoinTelegraph
The exchange operator of CBOE Global Markets wrote a letter to the US Securities and Exchange
Commission (SEC), recommending they not interfere in the
development of a Bitcoin exchange-traded-fund (ETF) because they are
similar to other commodity-based ETFs, March 23.
are a type of exchange-traded-product (ETP). An ETF is a marketable security
that tracks an index, a commodity, bonds, or a basket of assets like an index
fund. ETFs trade like common stock on a stock exchange and typically have
higher daily liquidity and lower fees than shares of mutual funds.
President Chris Concannon’s letter was in written response to a letter issued by the SEC in January 2018 in which,
among other concerns, the SEC expressed disquiet over sufficient liquidityin
cryptocurrency markets, as well as potential risks for manipulation.
stated that, “As the volumes continue to grow, especially on regulated US
markets, the overall spot Bitcoin market looks more and more like a traditional
commodity market and CBOE continues to believe that the spot market is
sufficiently liquid to support a Bitcoin ETP.”
added that, “...CBOE believes that the arbitrage mechanism would function
identically to other commodity-related ETPs… thereby keeping the price of the
ETP in line with the price of Bitcoin and limiting the risk of manipulation
shares of the ETP.”
echoed sentiments from a Congressional hearing earlier this month, in which
experts suggested that existing legislation is sufficient to regulate certain
aspects of cryptocurrencies.
CBOE shares many of the concerns raised in the Staff Letter, we believe that
the vast majority of these concerns can be addressed within the existing
framework for commodity-related funds related to valuation, liquidity, custody,
arbitrage, and manipulation,” Concannon wrote in his letter to Dalia Blass, a
Director of the Division of Investment Management.
SEC has been stepping up measures against crypto-related companies this year.
On March 15 the SEC confirmed dozens of probes into cryptocurrency companies,
issuing subpoenas to firms it suspects of flouting securities laws during
initial coin offerings (ICO). Earlier this week, a source speaking to WSJ said that the SEC will increase
its scrutiny in launching examinations into up to 100 hedge funds.
1. Global ETFs in 2017
2. ETF Market Capitalization
Grew by 0.91% in October 2017
3. Month of August Recorded
Inflow into the ETFs Market
4. Taiwan Stock Exchange and
Nasdaq Sign Memorandum Of Understanding
5. Christmas Comes Early for
Nigerian ETF Investors
6. Dubai Financial Market
Launches First-Of-Its Kind Regional ETF Trading Platform
7. NSE Admits SIAML Pension
ETF 40 to its Daily Official List
8. AfDB appoints MCB
Investment Mangt as Fund Manager for its 1st Fixed Income ETF in Africa
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investors’ confidence frail towards stocks
10. Quarter of Institutional
Investors to Capture Emerging Market Rebound through Index Tracking
11. Deepening the Nigerian
Capital Market - A Case for Exchange Traded Funds