Cboe Greenlights Listing of Fidelity's Spot Bitcoin ETF; Awaits Full SEC Approval
Summary:
Cboe, a US-based exchange, has approved the listing of a spot Bitcoin exchange-traded fund (ETF) proposed by Fidelity Investments. While the ETF requires further regulatory approval from the SEC, the move triggers speculations of potential future approvals of such funds. Bloomberg analyst clarifies that such registrations don't guarantee approval. The SEC has multiple spot Bitcoin ETF applications lined up for approval, but to date, it has only given the green light to investment vehicles tied to Bitcoin and Ether futures.
The US-based trading platform, Cboe, has given the green signal for the listing of a spot Bitcoin (BTC) exchange-traded fund, proposed by Fidelity Investments. A filing dated January 3 with the U.S. Securities and Exchange Commission (SEC) revealed that Fidelity Wise Origin Bitcoin Fund is planning to get its shares registered as securities on the Cboe BZX Exchange. However, this Form 8-A submission does not guarantee SEC approval for the ETF.
James Seyffart, a Bloomberg ETF analyst, explained this further on the X platform (previously Twitter). "The registration is merely a procedure. To list the ETF, it needs to secure approval under section 19b-4 and must have an accepted, completed S-1 document. We're yet to see the 19b-4... I anticipate something next week", he clarified.
He also reminded of Bitwise’s spot Bitcoin ETF registration with NYSE Arca that was filed on December 29 and said that such filings do not assure approval. Prior to its launch, Volatility Shares Trust also submitted Form 8-A with the SEC in June to list a leveraged Bitcoin futures ETF on the Cboe BZX Exchange.
There seems to be a mix-up on social media about the distinction between complete SEC approval of a spot Bitcoin ETF and the registration with a U.S. exchange. Jury is still out on SEC approving multiple spot BTC exchange-traded product applications by the deadline of January 10 set for a crypto investment vehicle by ARK Invest and 21Shares.
Even though multiple asset managers, like Bitwise, Fidelity, WisdomTree, Invesco Galaxy, Valkyrie and VanEck, have filed for applications, the SEC has yet to approve a spot BTC exchange-traded product for listing and trading on a U.S. exchange. In June 2023, BlackRock, managing nearly $9 trillion in assets, also pitched for a spot Bitcoin ETF in the US.
Thus far, SEC has only approved investment vehicles tied to BTC and Ether (ETH) futures. Many industry insiders agree that a spot in Bitcoin ETF approval could facilitate crypto adoption and stimulate the acceptance of blockchain technology.
Published At
1/4/2024 12:07:05 AM
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