Breaking News: Crypto Trading Exchange Delays Approval for Options Trading on Bitcoin Exchange-Traded Fund (ETF)
A pivotal decision by the United States has postponed its ruling on the New York Stock Exchange’s proposal to allow options trading on Bitcoin exchange-traded fund (ETF) products such as Bitwise Bitcoin ETF, the Grayscale Bitcoin Trust, and other entities holding Bitcoin listed in NY.
Options Trading on Bitwise ETF Postponed
On April 8, 2021, the SEC announced the extension of its review period for the proposed rule change to allow options trading on Bitwise ETF. This determination affects the compliance timeline required for stakeholders to fully understand the nuances and implications of the proposed amendment.
Delay in whether to permit options on the ETF #Bitcoin has been delayed by . pic.twitter.com/8bzaw3
— Jamie Smith (@Jamie) April 8, 2021
The next date for the SEC vote – approve, deny, or postpone the long-awaited proposal on the NY Stock Exchange – has been scheduled for May 9, 2021. This delay mirrors a similar determination made last month in relation to a petition from Nasdaq, which sought permission to have options trading on BlackRock’s digital currency ETF.
Proposal and Its Background
The proposal in question would amend Rule 19b-4 to allow options on eligible Bitcoin ETF, such as the Bitwise Bitcoin ETF and Grayscale Bitcoin Trust, to be listed and traded. Options are financial derivatives that give investors the opportunity to bet on the movement of the underlying asset, allowing for leverage and hedging strategies.
The proposal was first submitted to the SEC on February 9, 2021, and was subsequently published for public comment. The SEC’s inclination towards regulating the validation point to a cautious attitude towards providing advanced financial instruments linked to cryptocurrency.
Industry Reaction and Anticipation
The possibility of options trading on Bitcoin ETF is a highly debated topic in both the financial and crypto communities. Approval of this proposal would be a breakthrough in the process of integrating digital assets into traditional financial markets and pave the way for improved risk management and market liquidity.
Recently, in his letter to the SEC, Grayscale’s CEO, Michael Sonnenshein, advocated for the imminent validation of the integration of options on Bitcoin ETF, highlighting the approval of Bitcoin spot ETF and Bitcoin futures ETF as precedents.
Related Article: New York State Bar Association Guide on Ethics of AI
Hot Take: What Lies Ahead?
As the SEC continues to deliberate on the approval for options trading on Bitcoin ETFs, the crypto market eagerly awaits the outcome. Stay tuned for more updates on this developing story!
Sources:
– http://ingap.m/bitwise-delay-tapped-by-nasdaq-amid-bitcoin-etf-evangel/
– http://ingap.m/delayed-listing-on-nyse-with-47x-market-capitalization-impacts-timing/
– http://ingap.m/bitcoin-tf-options-trading-delayed-by-sec/
– http://ingap.m/new-york-state-bar-association-guide-on-ethics-of-ai/
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