Cboe Urges SEC To Support Bitcoin ETFs

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Chris Concannon from Cboe Global Markets sent a letter the SEC explaining that bitcoin ETFs do not involve significant risk and their approval should not be hindered.[1]

“While 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”

Cboe - Chris Concannon[2]

I think such messages may change the feeling immediately, what do you think?
Sources:
#1#2 https://www.cryptoglobe.com/latest/2018/03/cboe-encourages-sec-to-allow-bitcoin-etfs

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[ico41]

I think that if the SEC actually approves this, it would be a good development simply because it provides some access to the concept of crypto to those who would otherwise not have the ability to participate directly. And I'm not sure I see the concern of the SEC, since, as the article says, most of the concerns are addressed.  When Jay Clayton spoke in front of congress last month, he mentioned custody as a problem. But I don't see how custody is a problem when you have complete transparency on the blockchain.   

Unfortunately, the way the SEC seems to have been behaving lately, it seems unlikely to approve this in the near term. I think that they would argue that liquidity is a problem because of the exchanges, and they are simultaneously showing signs of aggressively pursuing the exchanges to exacerbate that problem.

So while I like the advice he has given the SEC, I hope it doesn't fall on deaf ears.

[Jet Cash]

The problem that I have with these ETFs is thinking of a way that they can enforce physical delivery. You could insist that coins are sent to an escrow address with a time restriction, but that requires an escrow agent. It also cuts out the possibility of uncovered shorts. The current Bitcoin ETFs seem to rely on cash settlement only.

I feel uncomfortable with them, so I haven't looked into the market. Maybe I should dabble a bit to see if I can get a better understanding. It is obviously going to be important in the future.