Having a bitcoin ETF could be the next frontier of digital currency investments and, at the same time, an additional tool to reassure investors in times of high volatility in the sector.
Not for nothing, JP Morgan has defined a possible ETF on bitcoin as a sort of Holy Grail of cryptocurrencies.
The case of the bitcoin ETF
On the past June 26, SEC received documentation for the creation of an exchange traded fund (ETC) bitcoin presented by the top management of CBOE Global Markets, in collaboration with Van Eyck investments and SolidX.
The details of the project would see the CBOE offer its customers the purchase of shares in SolidX, (current value 25 bitcoins) while the fund will simultaneously acquire bitcoins on over-the-counter markets.
What, then, does the aforementioned security derive from? The new instrument would also have the capacity to provide real insurance “against any potential loss or theft of bitcoins held by the ETF”.
The insurance policy will have initial limits of $ 25 million in primary coverage and $ 100 million in excess coverage, with the possibility of increasing it depending on the value of the bitcoin held by the Trust.
CBOE’s request is the last piece of a long strategy that the leading company in the sector (its bitcoin futures launched last December) has been carrying forward for some time now and that has seen in the recent past several refusals from the SEC because of some potentially unsolvable problems such as liquidity deemed too low.
In reality, that of the SEC has always been assessed as an ambiguous attitude that does not help the operators and, even more, the investors to adopt clear methodologies and guidelines: a clear position, however, has been taken in recent days when the supervisory authorities have definitely pronounced on the real nature of bitcoin and ethereum not considering them as security and thus opening the door to new scenarios.