CBOE: Bitcoin spot ETF will pave the way for retirement investing

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The Chicago Board Options Exchange (CBOE), the largest options exchange in the United States, said that spot Bitcoin exchange-traded funds (ETFs) will attract a new wave of institutional investors.

become one interview On January 2, John Palmer, president of CBOE Digital, noted that this approval will open the door to a new wave of interest in Bitcoin derivatives from institutional and retail investors.

“This approval will pave the way for pension funds and RIA-based funds to be able to invest in spot Bitcoin ETF assets,” he said, adding that many funds do not currently invest directly in Bitcoin.

An RIA is a firm registered with federal or state regulators to provide investment advice.

Palmer’s comments came a week before the Jan. 10 deadline. Next Wednesday, the U.S. Securities and Exchange Commission (SEC) must decide whether to approve ARK Invest 21 Shares’ application for a Bitcoin ETF.

Additionally, Palmer expects Bitcoin derivatives products to expand significantly upon approval. Institutions are sure to “increasingly rely on such derivatives” to hedge risks.

John Palmer -CFormer President, CBOE Digital

“It’s hard to tell where investors are going to crash,” Palmer said, noting that institutions are leading the way in using hedging tools, “but retail will be looking to that as well.”

CBOE Digital is the cryptocurrency arm of the exchange, offering crypto futures and options trading. They plan to launch margined (margin) derivatives trading for BTC and ETH on January 11, allowing investors to trade the contracts without posting full collateral.

Meanwhile, some mutual funds are beginning to roll out plans to increase investments in spot Bitcoin ETFs if approved.

On January 2, mutual fund manager Advisors Preferred Trust revised its prospectus so that the fund “may invest up to 15% of its total assets through shares of the Grayscale Bitcoin Trust, the ProShares Bitcoin Strategy ETF, and Bitcoin futures to invest indirectly in Bitcoin.”