SEC Postpones Decision on Bitcoin ETF Options Trading
The United States Securities and Exchange Commission (SEC) has announced a delay in its decision on approving options trading on spot Bitcoin exchange-traded funds (ETFs). This decision has implications for the potential influx of institutional capital into the Bitcoin market.
SEC Delays Decision
The SEC has extended the time to respond to Cboe Exchange and the Miami International Securities Exchange regarding their bids to offer options trading on Bitcoin ETFs. This means that the SEC is postponing its decision on allowing options trading on spot Bitcoin ETFs.
“Cboe Options’ current rules generally permit it to list options on an ETP three days after shares of the ETP begin trading on a national securities exchange. However, those rules do not apply to ETPs holding commodities such as Bitcoin.”
The SEC has also delayed its decision on Nasdaq’s bid to offer options on BlackRock’s iShares Bitcoin Trust (IBIT). The reason for the delay is to give the SEC adequate time to consider the request.
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change.”
Expected Delay?
The exchanges initially filed to list Bitcoin ETF options on January 25, which means that the first decision deadline would have been on March 10. However, the SEC has a 45-day timeframe to decide or differ on the matter, which means that the delay allows for an additional 45 days for the SEC to come to a decision.
Calls For Approval
There have been calls for the approval of options for Bitcoin ETFs. Grayscale CEO Michael Sonnenshein stated that options contribute to a robust and healthy market, and urged the SEC to approve them for Bitcoin ETFs. VettaFi analyst Dave Nadig also predicted that the approval of Bitcoin ETF options would attract hedge fund players into the 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 options, as they aren’t a feature of the OTC Market.”
Bitcoin ETFs Gain Traction
Spot Bitcoin ETFs were finally approved by the SEC on January 11, after months of delay. Since then, traders have invested billions of dollars into these ETFs. The SEC is now considering seven spot Ether ETFs. Analysts have speculated that the SEC will hold off on a decision until May 23, when they will likely approve all seven applications simultaneously.
🔥 Hot Take: SEC Postpones Decision on Bitcoin ETF Options Trading
The SEC’s delay in approving options trading on spot Bitcoin ETFs suggests that they are taking the time to carefully consider this decision. This delay has implications for the crypto market and potential institutional involvement in Bitcoin. However, there is optimism that once Bitcoin ETF options markets receive approval, there will be an influx of hedge fund players into the space, further expanding and strengthening the market.
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