Bitcoin needs ETN to grow, CBOE CEO says

20 Jan, 2019 | Updated: 20 Jan, 2019
by Fifi Arisandi
Opinion
Bitcoin needs ETN to grow, CBOE CEO says

Edward Tilly from CBOE thinks having ETNs will boost the Bitcoin's growth, if regulatory issues are settled.

Chicago Board Options Exchange (CBOE)’s CEO, Edward Tilly thinks that Bitcoin can grow massively if it has exchange-traded notes (ETNs).

Referring to Bitcoin’s subpar performance at CBOE, Tilly believes that retail investors would have more “trust” to Bitcoin if it has ETN-like investment instrument besides the high-risk future contracts-based, ETF.

His opinion is in contrast with the popular belief in investment, where ETF is usually more recommended than ETN. However, he referred to the successful case of CBOE’s VIX index that has trackers and ETNs, in addition to futures.

“The power of having that future there is also having an ETN that is more attractive to retail, and then institutions can lay that risk off on the listed futures market… Absent that leg and introducing trackers or notes, I think we will be in this, ‘it trades every day, but it is not the store,” he elaborated, as reported by Bitcoin Exchange Guide.

Adding to his opinion, he also highlights an urgent issue that needs to be addressed first if Bitcoin wants to grow and boom, which is the regulatory issue.

As of now, many countries have stated their intention and plan to regulate cryptocurrency in their own regions.  

In a bigger scope, however, global cryptocurrency regulation has only reached “opinion” and “ideation”, without any tangible actions by any parties so far.

Read more:

ICOs should be regulated globally, global economic organization suggests

Brexit uncertainty overwhelming cryptocurrency exchanges, says Forbes

Dutch financial authorities looking to end anonymous crypto purchases

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