According to senior Executive Director Global Markets Cboe, the market can support the launch of exchange traded products linked to bitcoin (ETP). About this he wrote in a letter addressed to the Commission on securities and stock exchanges of the USA.
Chris Concannon (Chris Concannon), President, Cboe, cited data collected by the company after launching a bitcoin futures at the end of last year, the argument of market movement to support exchange traded funds (ETFs).
His letter was a response to the January release of the SEC, in which the Commission stated its concern about the approval of the ETF, citing, in particular, on market fragmentation and gaps in the protection of investors.
We will remind that last year the SEC received several applications for the creation of ETFs, which was rejected.
In his address to the Commission, Concannon noted that, although the exchange bitcoin products appeared recently, but they are “actively developing”, that creates the prospect to run in the future exchange traded products (ETP).
“While trading volumes on bitcoin futures on the Cboe and CME exchanges at the moment may not be sufficient to successfully support ETP 100 percent short or long position, however, the Cboe believes that these volumes will grow in the near future reach levels comparable to other futures commodities. Then they could make a part of the ETP”.
In addition, he wrote that the markets of the state of currencies and gold “is probably even more fragmented” than crypto markets, noting that “there are a lot of sites for access to the foreign exchange markets.”
“While Cboe shares many of the concerns voiced in the letter from the staff of the SEC, we believe that most of these concerns can be addressed and existing funds of commodities, including their cost, liquidity, supervision, arbitration and manipulations,” the letter reads.