Futures exchange still wants Bitcoin ETFs – but concern on manipulation

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Cboe Global Markets already offer BTC futures, but is still keen on offering exchange-traded funds (ETF)

Cboe Global Markets president Chris Concannon wrote to the US  Securities and Exchange Commission (dated March 23) seeking to move the process forward, addressing SEC concerns on issues such as  illiquidity and fragmentation in bitcoin markets and how that’ll impact management of ETFs on the product:

  • Looking specifically to bitcoin, the nascent futures markets are developing quickly
  • current bitcoin futures trading volumes on Cboe Futures Exchange and CME may not currently be sufficient to support ETPs seeking 100% long or short exposure to bitcoin, Cboe expects these volumes to continue to grow and in the near future reach levels comparable to those of other commodity futures products at the time that they were included in ETPs

Cboe also touched on potential manipulation issues (bolding mine):

  • Cboe shares many of the concerns raised
  • 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

I reckon it is only a matter of time before the Cboe gets its way … traders do need to be awae of the concerns though – if trading be aware of how all these issues impact on liquidity – if you are in you will, at some point, want to get out … at a reasonable price for your volume.

Anyway, a BTC update:

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