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CBOE Supports Spot Bitcoin ETF Approval to Drive Institutional Interest CBOE Supports Spot Bitcoin ETF Approval to Drive Institutional Interest

Why spot Bitcoin ETFs could boost adoption

The Chicago Board Options Exchange (CBOE) believes that approving spot Bitcoin exchange-traded funds (ETFs) would attract greater institutional adoption of Bitcoin [
https://t.co/CnkYdXsbD4
]. CBOE’s Digital President John Palmer stated that ETF approval would boost interest from both institutional and retail investors in Bitcoin derivatives [
https://t.co/CnkYdXsbD4
].

Spot Bitcoin ETFs would allow traditionally restricted investors, like pension funds and Registered Investment Advisors (RIAs), easier access to Bitcoin investments. Many funds currently have difficulties obtaining direct Bitcoin exposure. Participation by RIAs would represent a substantial change in the market [
https://t.co/CnkYdXsbD4
].

Looming SEC deadline and future growth

The SEC has a January 10 deadline to decide on the ARK Invest 21Shares Bitcoin ETF application, which could significantly impact the market. Palmer predicts substantial growth in Bitcoin derivatives following a potential ETF approval [
https://t.co/CnkYdXsbD4
].

CBOE Digital plans to launch margined Bitcoin and Ether derivatives trading on January 11, lowering the barrier for investors to trade these contracts[
https://t.co/CnkYdXsbD4
].

Skepticism from analysts

FOX Business’ Eleanor Terrett expressed skepticism that the SEC would approve spot Bitcoin ETFs soon due to work backlogs and necessary reviews [
https://twitter.com/EleanorTerrett/…
].

The SEC has traditionally been cautious of spotcoin ETFs due to market manipulation concerns. However, it has been working more collaboratively with firms recently, after losing a lawsuit to Grayscale Investments [
https://t.co/CnkYdXsbD4
].

Industry experts speculate the SEC might approve multiple spot Bitcoin ETF applications together to avoid giving any one firm first-mover advantage [
https://t.co/CnkYdXsbD4
].

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