The CEO, president and chairman of the Chicago Board Options Exchange (CBOE), Ed Tilly asserts that in order to invite Wall Street institutional investors, the cryptocurrency ecosystem needs Bitcoin (BTC) exchange-traded notes (ETNs)
As Reported by the financial newspaper Business Insider on Jan.18, Tilly declared:
“The growth of Bitcoin in listed markets is still hamstrung by the lack of a trading product geared toward mom-and-pop investors.”
Bitcoin Futures vs ETNs
Tilly adds that Bitcoin futures could not observe a substantial growth as they lacked a note or tracker tied to BTC that retail customers could trade. According to him both futures and exchange-traded notes offers important acess points for Wall Street-type investors.
Elaborating further Tilly calls ETNs a more accessible instrument than futures for the average investor due to their lower barrier for entry.
“The power of having that future there is also having an ETN that is more attractive to retail, and then institutions can lay that risk off on the listed futures market. […] Absent that leg and introducing trackers or notes, I think we will be in this, ‘It trades every day, but it is not the story.’”
Delay in Approvals
Addressing the issue of the delay in Bitcoin exchange-traded products approvals of by the SEC, Tilly thinks it because the regulator feels that they cannot protect investors from manipulation on a market they cannot control.
“You answer that question, you get your first ETN,” concluded Tilly.
According to a recent report, Bitwise Asset Management, a cryptocurrency index fund provider has applied for a new Bitcoin exchange-traded fund with the United States Securities and Exchange Commission (SEC).