CBOE Submits Two Requests for First Spot Ethereum ETF

The Chicago Board Options Exchange (CBOE) has submitted two applications for approval from the SEC regarding the ARK 21Shares ETF and VanEck ETF. The application, filed under the 19b-4 form, is dated September 6. This form is typically used by self-regulatory organizations like the CBOE to request a specific requirement from the SEC.

The SEC has a period of 240 days to make a decision on whether to approve or deny the Ethereum (ETH) ETF.

### Understanding ETFs

Exchange-traded funds (ETFs) have gained popularity as a straightforward and convenient investment vehicle for various assets, including cryptocurrencies like Bitcoin (BTC). ETFs enable investors to gain exposure to the performance of an asset or a collection of assets without having to own them directly.

A Bitcoin ETF tracks the price of Bitcoin, allowing investors to engage with this significant cryptocurrency without the responsibility of purchasing or managing the digital coins themselves. This simplifies the process by removing the need to open an exchange account or handle cryptocurrency wallets, ultimately saving time and effort.

The attractiveness of ETFs lies in their user-friendly nature, transparency, flexibility, and relatively low cost. They offer traditional investors a way to access cryptocurrencies like Bitcoin, which can be subject to volatility and limited regulation. Investing in a regulated ETF can help mitigate some of the risks associated with direct cryptocurrency investments.

Interest in Bitcoin ETFs has surged, with both institutional and individual investors looking to gain exposure without physically holding the digital currencies. For example, the launch of the Purpose Bitcoin ETF in Toronto attracted significant demand, with around 10 million shares sold on its first day.

However, the path to Bitcoin ETFs has not been smooth. Regulatory bodies, including the US SEC, have been hesitant to approve Bitcoin ETFs due to concerns surrounding the inherent volatility and lack of regulation in the cryptocurrency market.

Recently, the SEC has postponed decisions on six applications for spot Bitcoin ETFs from various firms including WisdomTree, Invesco Galaxy, Valkyrie, VanEck, Fidelity, and BlackRock.