HEAD OF CHICAGO BOARD OPTIONS EXCHANGE: CRYPTOCURRENCY MARKET NEEDS BITCOIN-ETN
CBOE Director Edward Tilly believes that the cryptocurrency market does not have enough existing bitcoin futures-they need to be supplemented with exchange notes based on cryptocurrencies.
To continue the growth of the cryptocurrency market, it is necessary to introduce exchange notes (exchange-traded notes, ETN), based on bitcoin into circulation. This was stated by the head of the Chicago Board options exchange (CBOE) Edward Tilly.
According to Tilley, the turnover of bitcoin-based financial assets at CBOE is low due to the lack of specialized investment tools. The head of CBOE is sure that this problem can be solved by bitcoin-ETN, the security of which is secured by debt obligations, rather than a physical asset. Consequently, individual investors will be able to access the most popular digital asset.
In addition, bitcoin ETN will be popular in North America, as they have a lower “input” barrier compared to potential bitcoin ETFs, says Tilly.
According to the head of CBOE, the success of the index VIX (Volatility Index, or “fear Index”) is due to the fact that it includes not only futures, but also exchange receipts. However, he noted that the introduction of bitcoin-ETN will be associated with difficulties on the part of the regulator.