In line with a recent report by ‘Insider’, Chief executive officer, president and chairman at the CBOE [Chicago Board Options Exchange] named ‘Ed Tilly’, declared that there’s a requirement for Bitcoin [BTC] exchange-traded notes ‘ETNs’ so as Wall Street institutional investors could join the crypto area.
As per the article, Tilly stated that “the growth of Bitcoin in listed markets remains hamstrung by the shortage of a trading product geared toward mom-and-pop investors.” In line with him, Bitcoin futures failed to see substantial growth owing to the shortage of a note or tracker tied to BTC that retail customers might trade.
The article elaborates that both the futures and exchange-traded notes are necessary for offering access points to Wall Street-type investors.
As per the article, Tilly explained that ETNs are alot more accessible to the common capitalists in comparison to futures owing to their lower barrier for entry. Tilly continued:
“The power of having that future there’s additionally having an ETN that’s a lot of enticing to retail, and then institutions might lay that risk off on the listed futures market. […] Absent that leg and introducing trackers or notes, i feel we will be in this, ‘It trades each day, however it’s not the story.’”
As per Tilly, the reason why regulators failed to approve a Bitcoin exchange-traded product, like the still-pending ETF [exchange-traded fund] applications, is that the regulators cannot shield investors from manipulation on a market they can’t manage. “You answer that question, you get your first ETN,” Tilly added.
As reported earlier, renowned crypto entrepreneur and regular contributor to CNBC named ‘Brian Kelly’ claimed that there’s no chance for a Bitcoin [BTC] ETF ‘approval in 2019‘.
Even, earlier this month, cryptocurrency index fund provider Bitwise Asset Management has applied with the U.S. Securities and Exchange Commission [SEC] to launch a new Bitcoin ETF [exchange-traded fund].