If Bitcoin Wants to Grow, The Market Needs Exchange-Traded Notes (ETNs) Says CBOE CEO
If the crypto market wants to boom and keep growing, it is necessary to have Bitcoin ETNs. According to Edward Tilly, the CEO of the Chicago Board Options Exchange (CBOE), Bitcoin (BTC) could keep growing if more ETNs are released to the market.
During a conversation with reporters, Tilly mentioned that Bitcoin trading volume at the CBOE was not substantial due to the lack of specific investment instruments in the market. He was making reference to exchange-traded notes (ETNs) that are usually debt-secured rather than backed by the physical asset. In this way, retail investors could have exposure to the most popular digital asset in the market.
Bitcoin ETNs could be very popular in North America due to the fact that they have low entry barriers compared to an eventual Bitcoin ETF or other Bitcoin funds operating in the market.
About it, Tilly explained:
“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 store.’”
According to Mr. Tilly, the CBOE’s VIX index, which measures volatility in the markets, succeeded due to the fact that there are futures, trackers, and ETNs working in tandem. There are not only just futures offered. However, he explained that there are some regulatory issues that must be addressed. For example, manipulation is something that is affecting the crypto markets and that regulators around the world are also trying to address.
2019 could be a very good year for institutional adoption and more regulations in the space. Indeed, there are several companies that are already planning to launch new platforms for institutional investors that want to have exposure to the crypto market. Furthermore, the U.S. Securities and Exchange Commission (SEC) could soon approve the first ever Bitcoin exchange-traded fund. If that happens, several companies and larger investors could have access to Bitcoin.