Bitcoin ETF Options – SEC Decision Delayed

SEC Delays Decision on Options for Bitcoin ETF on NYSE

The decision of the Securities and Exchange Commission (SEC) in the United States regarding the approval for the New York Stock Exchange (NYSE) to offer trading options on spot-traded Bitcoin ETFs has been delayed. This information was announced on April 8, 2024, and pertains to proposed options trading related to funds such as Bitwise Bitcoin ETF (BITB) and Grayscale Bitcoin Trust (GBTC).

Request for Rule Change Requires Additional Time

The SEC stated that they need more time to consider the proposed rule change related to offering options for Bitcoin ETFs on the NYSE. Options are financial products that allow traders to speculate on the market using financial leverage, enabling investors to make bets on the future price of Bitcoin while minimizing financial risk.

Expected Benefits for the Market upon Options Approval

If options for spot-traded Bitcoin ETFs such as Bitwise and Grayscale are approved, it is expected to contribute to a more stable and healthy cryptocurrency market. CEO of Grayscale Investments, Michael Sonnenshein, expressed hopes for a positive impact of introducing options on the market as early as February 2024.

NYSE, Nasdaq, and Cboe Submit Options Trading Proposals

The New York Stock Exchange filed Form 19b-4 on January 12, proposing options trading on Bitcoin ETFs, while Nasdaq and Cboe also submitted their own proposals on January 19. The delay in the SEC’s decision aligns with a similar outcome for Nasdaq, which recently sought approval for options trading on iShares Bitcoin Trust (IBIT) by BlackRock.

The cryptocurrency industry is closely monitoring the development of the situation concerning options for Bitcoin ETFs on the NYSE, awaiting the final decision by the SEC, which could have a significant impact on the market’s operation.