Bitcoin ETFs are Coming


It’s only a matter of time now before bitcoin makes its way to exchange traded funds (ETFs), according to the CEO of CBOE Global Markets Inc. Investors bullish on bitcoin can therefore expect more positive vibes from mainstream finance, which is slowly but surely embracing the digital asset.

Bitcoin Coming to ETFs?

The booming market for ETFs could get more interesting as major funds look for ways to integrate bitcoin. According to CBOE President Chris Concannon, this could happen gradually over time.

“With regulated futures of a certain asset class like a bitcoin, you do have an opportunity to introduce ETFs and over time we do envision ETFs coming to market,” Concannon said in an earnings call on Tuesday, according to Bloomberg Markets.

CBOE has already introduced plans for bitcoin futures, which are scheduled to hit the markets by the end of this year. Rival

It didn’t take long for rival CME Group to also announce plans for bitcoin futures by the end of this year or early 2018.

The Winkelvoss twins failed to launch their bitcoin ETF earlier this year, with the Securities and Exchange Commission (SEC) rejecting the proposal outright. In a statement, the regulator said the proposed ETF was not consistent with Section 6(b)(5) of the Exchange Act, which is intended to stamp out fraudulent and manipulative practices.

Booming ETF Market

ETFs are enjoying record inflows, with global assets under management reaching a staggering $4.3 trillion by the end of July. BlackRock, Vanguard and State Street continue to be the major leaders in the market. According to PricewaterhouseCoopers, total ETF assets are forecast to reach $5.9 trillion over the next four years.

A bitcoin ETF would be easily accessible by millions of investors through common investment vehicles, including retirement accounts. It would also raise the profile of the digital asset class and attract more people to it.

Featured image courtesy of Shutterstock. 

Chief Editor to and Contributor to, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi