Cryptocurrency exchanges like the Winklevoss Twins’ Gemini have applied to list Bitcoin ETFs time and time again. However, it’s ultimately up to the Securities and Exchange Commission (SEC) to make a decision.

This time, the SEC has postponed its decision regarding the Cboe exchange yet again. Revealed via an order, the SEC states:

“Pursuant to Section 19(b)(2)(B) of the Act, the Commission is providing notice of the grounds for disapproval under consideration. The Commission is instituting proceedings to allow for additional analysis of the proposed rule change’s consistency with Section 6(b)(5) of the Act, which requires, among other things, that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade,’ and ‘to protect investors and the public interest.’”

The group is opening its arms to the public, seeking more information to inform their views on the matter. As of September 19th, the SEC had received over 1,400 letters discussing the subject.

Suggested Reading : Keep up to date with Bitcoin’s price here.

Backing The Asset

Should the SEC approve the Cboe application, the platform would be the first to offer accredited investors the ability to trade ETFs. Specifically, Cboe would provide shares in SolidX, each one equivalent to 25 Bitcoin. This is because Bitcoin ETF’s would be backed by Bitcoin holdings stored in the VanEck SolidX Bitcoin Trust, according to the order:

“The Exchange proposes to list and trade the Shares under BZX Rule 14.11(e)(4), which governs the listing and trading of Commodity-Based Trust Shares on the Exchange.9 Each Share will represent a fractional undivided beneficial interest in the Trust’s net assets. SolidX Management LLC will be the sponsor of the Trust (“Sponsor”). The Trust will be responsible for custody of the Trust’s bitcoin.”

Cboe’s original goal was to launch Bitcoin ETFs by quarter one of next year, but that obviously depends on the SEC’s decision. Regardless of who is accepted first, one can’t deny the importance of ETF’s to the overall success of the cryptocurrency industry. Not only would Bitcoin ETF’s legitimize the currency to naysayers, but it would also expose the digital asset to additional mainstream markets.

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