Cboe Seeks SEC Approval for Bitcoin and Ethereum ETFs

Cboe Global Markets has submitted a 19b-4 application to the U.S. Securities and Exchange Commission (SEC), seeking approval for the ARK 21Shares Bitcoin ETF and the 21Shares Core Ethereum ETF. This application aims to facilitate in-kind creations and redemptions, marking a significant step towards enhancing institutional investment in cryptocurrencies.

The anticipated approval of these spot ETFs would permit transactions through cash settlements exclusively, impacting the liquidity dynamics of the Bitcoin and Ethereum markets. Investors should remain vigilant as this transition could significantly influence market behavior and investor strategies in cryptocurrency. ETFs, particularly for those seeking exposure to digital assets, represent a crucial vehicle for diversifying portfolios amidst increasing regulatory scrutiny.

This development comes as Cboe continues to expand its offerings in the cryptocurrency space. The exchange operator has previously listed several Bitcoin futures contracts and has been actively exploring the potential of digital assets. The approval of these ETFs would further solidify Cboe's position as a leading venue for cryptocurrency trading.

The SEC's decision on the application is expected in the coming months. If approved, the ETFs would provide investors with a more accessible and regulated way to gain exposure to Bitcoin and Ethereum. This could potentially lead to an increase in institutional investment in cryptocurrencies, further driving the growth and adoption of digital assets.