Cboe Global Markets, the first exchange operator in the U.S. to offer bitcoin futures, said U.S. regulators should not be preventing exchange traded funds based on the digital currency from coming to market because bitcoin-based ETFs would be similar to commodities exchange traded products.

Bitcoin futures debuted on the Cboe in December, followed by a launch on the CME. Nasdaq Inc. is still considering entering the bitcoin futures competition. Market observers previously expected Nasdaq to launch futures on the digital currency this year, perhaps as early as the second quarter.

Related: How Do You Buy Bitcoin?

“The U.S. Securities and Exchange Commission said in January that ‘significant investor protection issues’ needed to be examined before bitcoin-based ETFs could be offered and it also had concerns around how the products would be priced, stored and safeguarded,” reports Reuters.

Failure To Launch Bitcoin ETFs

Derivatives help increase liquidity and improve markets for an asset category by allowing investors to bet on ups and downs of an asset, evening allowing individuals to adopt market-neutral strategies. They are also a key component in the creation of many futures-backed ETFs utilized by a range of investors.

However, the debut of bitcoin futures has not served as a launchpad for ETFs based on the cryptocurrency. In fact, ETF issuers have been withdrawing plans for bitcoin funds.

Related: Japanese Regulator Crimps Bitcoin

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