SEC Delays Decision on Options Trading for Spot Bitcoin ETFs

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on a proposal from the New York Stock Exchange (NYSE) to introduce option trading for Spot Bitcoin ETFs. This delay applies to Grayscale Bitcoin Trust and Bitwise Bitcoin ETF, both of which hold actual Bitcoin and trade on the NYSE.

SEC Cites Need for More Time

The SEC’s filing on April 8th states they require additional time to carefully consider the proposed rule change. The deadline for a decision is now May 29th. This proposal, submitted in February, would modify Rule 915 to allow options trading on specific Bitcoin ETFs. Options are essentially contracts that grant the right, but not the obligation, to buy or sell an underlying asset at a predetermined price by a certain date. Options trading introduces strategies for hedging and leverage for investors.

Similar Delays for Other Spot Bitcoin ETF Options Trading

The SEC has also delayed decisions on requests from Nasdaq for options trading on BlackRock’s iShares Bitcoin Trust (IBIT) and from CBOE and Miami International Securities Exchange for offering options on spot Bitcoin ETFs.

Grayscale Pushes for Approval

Grayscale CEO Michael Sonnenshein is one of those urging the SEC to approve options trading for spot Bitcoin ETFs. He argues that since the SEC already greenlit futures and spot Bitcoin ETFs on the NYSE, options trading is a logical next step and would contribute to a “robust and healthy market.”

Uncertain Future for Spot Bitcoin ETF Options

The SEC’s delay leaves the future of options trading for spot Bitcoin ETFs uncertain. While Grayscale argues for its benefits, the SEC is taking its time to assess the potential risks and implications.

Meanwhile, Spot Bitcoin ETFs Gain Traction Globally

Despite the US regulatory hurdles, Spot Bitcoin ETFs are gaining momentum worldwide. Hong Kong is poised to launch its own Spot Bitcoin ETFs this month, and wealthy investors in India are using remittance quotas to invest in US Spot Bitcoin ETFs.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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