A senior executive for Cboe Global Markets believes that the market could support the launch of a bitcoin exchange-traded product (ETP), according to a new letter sent to the U.S. Securities and Exchange Commission.
was a response to a January release from the SEC, in which it outlined its concerns over approving an ETF, citing market fragmentation and investor protection shortfalls in particular.
In his response, Concannon noted that although they are young, the bitcoin commodity markets "are developing quickly," which is promising for future exchange-traded products (ETPs).
"While Cboe shares many of the concerns raised in the Staff Letter, we believe that the vast majority of these concerns can be addressed within the existing framework for commodity-related funds related to valuation, liquidity, custody, arbitrage, and manipulation," the letter noted.
Speaking with Business Insider, Concannon remarked that he sees the markets for government-issued currencies and gold as being "probably more fragmented" than cryptocurrency markets, noting that "there are a lot of venues to access currency markets."
Bitcoin and markets graph image via Shutterstock
Correction: This article has been updated to attribute comments from Chris Concannon to an interview with Business Insider. CoinDesk regrets the error.
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