CBOE Makes A U-Turn on Crypto Product Offerings As CEO Sees Market Opportunity Ahead

Smelling a huge market opportunity ahead, CBOE  is looking to get back with its cryptocurrencies offerings. The Chicago Board Options Exchange (CBOE) is one of the early players in the crypto space.

Back in December 2017, CBOE was the first to launch its Bitcoin futures cash-settled contracts in competition with the CME. However, in June 2019, CBOE decided to withdraw its BTC futures while settling its last contracts. CBOE has taken a few back-and-forth decisions when it comes to its participation in the cryptosphere.

Last December 2020, CBOE entered into the crypto market data business by joining hands with CoinRoutes Inc. the two are now planning to launch their own cryptocurrency index by Q2 2021.

In a phone interview with Bloomberg, CBOE Chief Executive Officer Ed Tilly said that is making fresh efforts to bring new crypto products into the crypto space as the market matures and demand for institutional products increases. Speaking about Bitcoin Futures, Tilly said:

“We’re still interested in the space, we haven’t given up on it. We’re keen on building out the entire platform. There’s a lot of demand from retail and institutions, and we need to be there.”

Fresh Opportunity In the U.S. Bitcoin ETF Space

Financial institutions in the U.S. have joined the race for introducing the first Bitcoin ETF in the country. Fidelity Investments is the latest to apply for a Bitcoin ETF with the U.S. SEC. Over the last two years, the securities regulator has rejected dozens of applications.

Even CBOE has had some unsuccessful attempts with listing its exchange-traded vehicle in the past. In September 2019, the CBOE BZX Exchange had to withdraw its proposal to list the shares of the VanEck SolidX Bitcoin Trust.

However, it hasn’t given up its Bitcoin ETF hopes yet. Earlier this month, CBOE submitted a fresh application for the VanEck Bitcoin Trust. “We’re very keen to move along approval for the VanEck ETF,” Tilly said. Currently, there are six pending Bitcoin ETF applications with the SEC awaiting approval. The decision for the same could probably come in the next 45 days.

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