Third time the charm of a Bitcoin Spot ETF? Cboe is trying to find out again

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Source: Pixabay

Cboe Global Markets has filed a proposal to list and trade shares of a bitcoin cash exchange-traded fund, marking the third time the firm has sought U.S. regulatory approval.

Cboe BZX Exchange, operated by Cboe, formally filed with the Securities and Exchange Commission on Tuesday for listing and trading of these shares of the ARK 21Shares Bitcoin ETF.

Cboe attempted in May 2022 and August 2021 to list and trade ARK 21Shares Bitcoin ETF.

The SEC has repeatedly had concerns about fraud and manipulation in these and other denials in the past.

A battle in progress

The SEC has not yet approved a spot bitcoin ETF.

The agency approved several bitcoin futures ETFs when it cleared the ProShares Bitcoin Strategy ETF for trading in October 2021.

The approval of a bitcoin futures ETF and not a bitcoin spot ETF was specifically a point of contention in a lawsuit filed against the SEC by crypto asset management firm Grayscale.

Grayscale has been trying for years to convert its flagship Grayscale Bitcoin trust fund into a cash bitcoin ETF.

In its brief, Grayscale argued that the spot price of bitcoin in spot and futures ETFs is subject to the same risks, and therefore it does not make sense to endorse one product and not the other.

In March, oral arguments were heard by the DC Circuit Court of Appeals.

Former U.S. Solicitor General Don Verrilli, who represents Grayscale, argued in court that the SEC’s disapproval of Grayscale’s bitcoin spot ETF contradicts previous orders.

Other disclaimers

Dozens of other proposals have been denied by the SEC for years.

A proposal by Cameron and Tyler Winklevoss to list and trade shares of the Winklevoss bitcoin trust was published in July 2016.

This bitcoin spot ETF has been repeatedly rejected.

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