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The lack of Bitcoin ETN Curbing Adoption, says CBOE Chief
In a recent media lunch, Edward Tilly, chief executive of the financial center that is the Chicago Board Options Exchange, the largest US stock exchange, made an astonishing mention of Bitcoin and the broader cryptocurrency market.
Speaking to journalists, including those of Business Insider, Tilly, who previously worked as a heavyweight market maker to whom he now heads, noted that the volume of Bitcoin via CBOE vehicles has not seen substantial growth due to of the lack of a specific instrument. This financial instrument is a note traded on the stock exchange (ETN), which are often secured by debt rather than physically backed, are products that primarily enable retail investors to gain exposure to certain activities that are often more desirable and difficult to access.
Tilly hinted at this, noting that Bitcoin's ETNs, unlike futures, could be a popular product for the American average Joes and Jills, in particular because of their "low entry barrier." Business Insider said the barriers referred to the permissions of the accounts involved, as the futures trade allegedly "requires a significant amount of legwork". The CBOE chief, who helped double the company's actions during his term, explained:
The power to have that future is also an ETN that is more attractive to retail, and therefore institutions can put that risk on the listed futures market … Absent that leg and introducing trackers or notes, I think that we will be in this, "It is exchanged every day, but it is not history.
Tilly's comments on the need for cryptographic ETNs are not ignored. More specifically, the finance veteran noted that the VBO of CBOE, a world-wide volatility index traded by investors en masse, has succeeded due to futures, trackers and ETNs working in tandem rather than pure future .
Still, Chief CBOE noted that regulatory concerns remain regarding ETNs, along with their cousin ETF, since manipulation is still widespread in the cryptocurrency markets. Tilly even joked that he has the contacts of two regulators "who are not taking calls right now".
2019: The year of Wall Street Bitcoin
Regardless of Tilly's concerns, many remain convinced that 2019 will be the year when Wall Street faces cryptocurrencies in the first person.
According to previous reports by Ethereum World News, the cynical filmmaker Jeff Berwick, the so-called "Watchful Dollar", told Block TV that he is waiting for 2019 to greet the Wall Street greenbacks, which "will completely change the game." he said that with the flood of institutional capital, cryptographic evaluations will "explode" en bloc, as there are alleged trillions waiting on the sidelines.
And, interestingly, many experts believe that the joke of Berwick has belief. Just recently, as reported previously, BitGo, in collaboration with the Digital Currency Group's Genesis Trading arm, recently revealed that it would launch an innovative pseudo-exchange offering.
The collaborative effort of BitGo and Genesis is taking the form of a newfoldled over the counter (OTC) trading service that will allow customers to "buy and sell digital assets directly from the security of their BitGo Trust cold storage account". Genesis, chaired by Michael Moro, will provide his expertise in facilitating high-value, institutional-sourced transactions, while BitGo will leverage its veteran status in the Bitcoin custody sub-sector to ensure the security of supply. Bitcoin, Ethereum, Ripple's XRP, ZCash and other three leading digital resources will be available through this innovative exchange channel.
Although this news may seem "the same old, the same old", many believe that this new adventure can trigger a new institutional interest. More specifically, in an environment where cryptographic exchanges (look at Cryptopia) are violated, BitGo's secure trading offer, which also includes low commissions, abundant amounts of liquidity and fast transaction processing times, Wall Street could start clamor.
Furthermore, the hype for Bitcoin ETFs continued to mount.
Sun Rays Title Image Courtesy of Bruno Van Der Kraan Via Unsplash
