Grayscale CEO Advocates for Options to Follow ETFs
Michael Sonnenshein, Grayscale’s CEO, is pushing for regulators to approve options tied to spot Bitcoin exchange-traded funds (ETFs) as they could substantially benefit investors by providing them with additional tools for understanding market dynamics and investing more effectively.
Call for Equal Treatment for Crypto Assets
Sonnenshein explains that options are financial contracts that give investors the right, but not the obligation, to buy or sell a specified amount of an asset at a predetermined price within a specified time frame. He believes that options on commodity-based ETFs, including spot Bitcoin ETFs, need to be made available for market fairness.
SEC’s Progress in Deciding on Options
National exchanges are actively seeking regulatory amendments to allow options trading on commodity-based ETFs, including spot Bitcoin ETFs. The SEC is reviewing proposals and may consider BlackRock’s proposal with Cboe. Sonnenshein is optimistic about the potential impact of these products and believes that options would make investing in Bitcoin more accessible and understandable for new investors.
Hot Take: Options as a Complement to ETFs
Options could revitalize the lost momentum from failed ETFs and provide new opportunities for investors in the burgeoning market.
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