Chicago Board Options Exchange parent Cboe has again filed for a spot Bitcoin ETF with the SEC despite being rejected in late January.
In a recent regulatory filing, Cboe Global Markets made its third attempt to list the ARK 21Shares Bitcoin exchange-traded fund (ETF). On Tuesday, the Chicago Board Options Exchange parent company sought approval from the Securities and Exchange Commission (SEC). The latest regulatory filing reflects the Cboe’s struggle for a US Spot Bitcoin ETF. The SEC has rejected all previous attempts, with the latest in late January.
However, Cboe is one of many entities that find it challenging to secure SEC regulatory approval for spot BTC ETFs. The Commission has rejected similar bids from other firms such as Grayscale, Fidelity, and New York Digital Investment Group (NYDIG).
Cboe Unrelenting in Quest to Secure Spot Bitcoin ETF Approval from SEC
Nonetheless, Cboe appears determined to secure the necessary approval to list and trade the spot Bitcoin ETF shares from Ark Invest and crypto investment product firm 21. Should Cboe eventually succeed, the company would be the first to publicly list a spot BTC ETF in the US.
For practical reasons, the SEC has struck down all previous attempts by various platforms to list spot Bitcoin ETFs. So far, the securities regulator believes all spot ETF proposals need more adequate investor protection measures. However, although the Commission remains opposed to spot ETFs, it has approved several other Bitcoin ETF types in recent years.
Despite the SEC’s best intentions, several aggrieved spot ETF hopefuls feel the regulator’s stance is unjustified. As a result, firms such as Grayscale and Coinbase (NASDAQ: COIN) have launched legal proceedings against the SEC. In the summer of last year, Grayscale filed a lawsuit against the regulatory agency, with Coinbase later playing a supporting role. Referring to the SEC’s refusal to approve its spot ETF last June as “arbitrary, capricious, and discriminatory,” Grayscale expressed its intent to fight for the fund. The digital currency asset management company also argued that the regulator’s position was inconsistent in light of previous approvals of other BTC-based ETFs.
Meanwhile, Coinbase opined that the SEC’s stance was due to its limited knowledge of blockchain technology and digital assets. At the time, the aggrieved group described ETFs as “ideally suited for investors that desire exposure to Bitcoin” and questioned the SEC’s “thumb on the scale” approach.
US Government & ‘High-Risk’ Digital Assets
The SEC’s approach to digital assets once reflected the US government’s unwavering aversion to crypto. However, Washington has recently seemed more amenable to embracing crypto and outlined proper regulations to protect consumers. If spot ETFs are to see US approval, these securities will seemingly only come to light once enough regulation is in place.
While the US has yet to approve a spot Bitcoin ETF, other nations have had them for some time. These include neighboring Canada and far-away Australia, with Brazil joining them last November.