During the conference during a media lunch on January 16, 2019, Ed Tilly, CEO of CBOE (Chicago Board Options Exchange) indicated what is hindering the growth of Bitcoin Futures and keeping Wall Street money out of the cryptocurrency market. According to him, Electronic Traded Notes (ETNs) holds off billions of Wall Street.
Why are ETN indispensable for the success of Bitcoin Future?
Because electronically traded notes can be denominated in smaller quantities, retail investors can easily access them. On the other hand, an institutional investor using the future Bitcoin must have a separate account created to enter the market. Tilly conveys the importance of ETN as an entry point for institutional investors. He says;
"The power to have that future is also an ETN that is more attractive to retail, and therefore institutions can lay off the listed futures market",
He said that both products are fundamental for each other: it becomes a base for the market, the wall street and the main road. Nevertheless, he believes ETN is easily accessible to average investors and does not have a higher barrier to enter the market, while Bitcoin futures would require "significant amounts of legwork".
Absent that leg and introducing trackers or notes, I think we'll be in this, "You trade every day, but it's not history.
Govt. arrest by delaying the launch of Cryptocurrency products
He says regulators are always reluctant to approve ETNs and hold a government shutdown, it is even more difficult to predict the launch of new products such as Ether futures. In addition, Coingape reported that the SEC's latest order on the freezing of all pending procedures does not necessarily change the status of the approval of Bitcoin's ETF. Tilly says that "we can not move for future products;
"I have two regulators who are not receiving calls at the moment, this does not mean that there is nothing that interests us, it means that nothing will happen in this government arrest".
Moreover, as far as ETFs are related to regulators, it remains a difficult question. With this he says;
"How can I protect the US customer from handling in a non-regulating market?" You answer this question, get your first ETN. "
The #ETF It's simply interesting, #SEC Freezing of all pending proceedings following #GovtShutdown . Question is: what happens to the archived ETFs if SEC does not respond before the deadline? @MatiGreenspan @APompliano @martin_schwarz @jchervinsky https://t.co/VzG16NtzRu
– CoinGape (@CoinGapeMedia) January 18, 2019
Regulators are still uncertain about cryptocurrency regulations
The launch of the first bitcoin futures of CBOE in 2017 when Bitcoin prices reached almost $ 20,000 was a historic entry and open interest for the future has 5,306 contracts. However, after a year, the number of open interest fell to 3420 contracts. With this, Tilly also talks about the success behind the futures of the CIXE Volatility Index (VIX), which has significantly planned 370,354 open network contracts on Thursday 17 January 2019. As a result, he adds that there are several financial products in connection with the VIX contract.
"Because VIX has been successful, it really appeals to the liquidity pool in the S & P 500. Oh, and there is an institutional futures contract that is traded to the CME." "It's a more successful ETF," SPDR: There are trackers and replicating notes that act as a lever to that exposure, and that works together. "
While appreciating the VIX contract, he adds that the crypto-market has also tried to offer new financial products to the market, but regulators are uncertain to approve. Tilly links the growth of bitcoins with the approval of ETFs by regulators, however, we saw that the SEC in August 2018 has already rejected 9 ETFs including Winklevoss Bitcoin Trust.