CBOE Set to Launch Six Spot Bitcoin ETFs Following SEC Approval
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In a major development for the cryptocurrency market, the Chicago Board Options Exchange (CBOE) announced on Wednesday its plans to list six spot bitcoin exchange-traded funds (ETFs). This comes after the Securities and Exchange Commission (SEC) reportedly granted approval for these products.
UPDATE: SEC Chair Gary Gensler issues statement on spot #Bitcoin ETF approval. Interesting 👇 pic.twitter.com/9SX7zRA9Mf
— Altcoin Daily (@AltcoinDailyio) January 10, 2024
Distinguishing themselves from their futures-based counterparts, spot bitcoin ETFs directly mirror the price movements of bitcoin. Investors seeking exposure to the cryptocurrency without navigating the complexities and risks of futures trading find these funds particularly attractive.
CBOE Creates Room for Fidelity, VanEck, ARK21Shares, and Others
The six spot bitcoin ETFs slated for listing by CBOE are: ARK21Shares Bitcoin ETF, Fidelity Wise Origin Bitcoin Fund, Franklin Bitcoin ETF, InvescoGalaxy Bitcoin ETF, VanEck Bitcoin Trust, and WisdomTree Bitcoin Fund. Having filed applications under the 1933 Securities Act, these funds await the SEC’s decision within the stipulated 75-day period.
While many are still unsure about the approval of a spot Bitcoin ETF by the SEC, industry analysts and traders anticipate a confirmation from official channels, such as the SEC’s website and X account.
In contrast, the SEC has already given its nod to several futures-based bitcoin ETFs, which are experiencing robust demand from investors. Notably, the ProShares Bitcoin Strategy ETF, the first of its kind, achieved over $1 billion in assets under management within days of its October 2021 launch.
Bloomberg ETF analyst Eric Balchunas predicts that the SEC will formally announce its approval of spot bitcoin ETFs on Wednesday, paving the way for trading to commence on Thursday (today).
Looks like the first "request for acceleration" (which is a request to launch on same day as everyone else, in this case 1/11, which the SEC told issuers to put in today) has dropped. We were expecting them at 4pm, but earlier is fine (ARK is always the first in this stuff), it's… pic.twitter.com/HEi6jB56qY
— Eric Balchunas (@EricBalchunas) January 10, 2024
SEC’s Costly Mistake
Earlier this week, confusion ensued when the SEC’s official X account posted and swiftly deleted a tweet claiming the approval of bitcoin ETFs on all registered securities exchanges. The tweet included a quote from SEC Chair Gary Gensler.
Subsequently, another tweet clarified that the information was unauthorized and that spot bitcoin ETFs had not received approval. The SEC assured the public that the incident is under investigation and does not impact its ongoing review process.
This mistake caused the crypto market to record erratic price reactions, triggering hundreds of millions of dollars in liquidations.
