Avalon Labs will apply to the U.S. SEC for the first Bitcoin debt securities ETF

ChainCatcher news, according to Cointelegraph, Avalon Labs is actively exploring the application to the U.S. Securities and Exchange Commission (SEC) for the industry's first Bitcoin collateralized debt obligation (CDO) listed fund, aiming to promote the compliance and popularization of Bitcoin financial products. Avalon Labs stated that this initiative is expected to lower the barriers for Bitcoin financial products to enter the mass market, providing a new pathway for the crypto industry to move towards the mainstream financial system.

The co-founder of Avalon Labs successfully issued a dollar-denominated CDO listed fund approved by the SEC in 2021 and has since researched the feasibility of crypto companies issuing listed funds for several years. Avalon Labs indicated that it plans to collaborate with top U.S. law firms to assess the compliance framework for the fund and prepare the relevant application materials. If everything goes smoothly, the fund is expected to become an important milestone for Bitcoin financial products entering the traditional capital market, further promoting the development of crypto assets within a compliant framework.