The U.S. Securities and Exchange Commission (SEC) has once again delayed its decision on applications for spot Bitcoin exchange-traded fund (ETF) options. The regulator cited the need for public input before proceeding with the approval process.
Request for Public Comment
In a recent filing, the SEC announced the postponement of its decision on launching options trading for Bitcoin ETFs, inviting public comments on the matter. Comments are requested within the next 21 days, with rebuttals due within 35 days. The agency has raised questions regarding whether options on spot Bitcoin ETFs should be subject to the same regulations as stocks.
Exchanges Apply for Options Trading
Several exchanges, including Cboe Exchange, Inc., BOX Exchange LLC, MIAX International Securities Exchange LLC, Nasdaq ISE, and NYSE American LLC, have applied to allow options trading on recently approved spot Bitcoin ETFs.
Delay in Consideration of Grayscale and Bitwise Applications
The SEC also postponed consideration of Grayscale and Bitwise’s applications to launch Bitcoin options ETFs. The regulator deemed it necessary to extend the review period, with the next deadline set for May 29.
Grayscale CEO Advocates for Options Market
As we look ahead, I think it’s never been more important for the #crypto and ETF communities alike to advocate for the development of a robust listed options market for spot #bitcoin ETFs. Although $GBTC has been in the public market since 2015, it was never accompanied by listed…
— Sonnenshein (@Sonnenshein) February 5, 2024
Grayscale CEO Michael Sonnenshein has emphasized the importance of launching an options market for spot Bitcoin ETFs. Sonnenshein believes that such a product would benefit both retail and institutional investors, although he acknowledges the complexity involved in gaining SEC approval.
The delay in the SEC’s decision on Bitcoin ETF options reflects ongoing uncertainty surrounding the regulatory framework for cryptocurrency investment products. As exchanges await regulatory clarity, industry stakeholders continue to advocate for the introduction of innovative financial instruments to the market.
