US SEC Delays Decision on Bitcoin ETF Options Trading
Recently, the U.S. Securities and Exchange Commission (SEC) has decided to extend the review period for the proposed Bitcoin options trading Exchange-Traded Funds (ETFs) by Grayscale and Bitwise. The Commission has postponed its decision, providing more time to evaluate the applications for listing the trading of Bitcoin ETF options. This delay indicates the SEC’s cautious approach to overseeing crypto-related products, pushing back the decision date to May 29, 2024.
SEC Designates May 29 as New Decision Date 📆
- The SEC has chosen to allocate additional time to review the proposed rule change for Bitcoin ETF options trading.
- May 29, 2024, is now set as the deadline by which the SEC will approve, disapprove, or initiate proceedings for the applications by Grayscale and Bitwise.
- The delay follows the approval of 11 Bitcoin ETFs on the NYSE and Nasdaq on Jan. 10, marking the initial batch of such financial products.
Deferred Applications Filed by Cboe and Nasdaq 📉
- In March 2024, the SEC deferred its decision on Bitcoin ETF options trading, affecting applications from Cboe Exchange Inc. and Nasdaq ISE.
- The proposals aimed to introduce derivatives for traders to speculate on future gains or hedge against potential losses.
- Investors could enter into contracts to buy specific assets, like spot Bitcoin ETFs, at predetermined prices in the future, providing investment alternatives.
Hot Take 🔥
The postponement of the SEC’s decision on Bitcoin ETF options trading signifies a cautious approach to regulating crypto-related products, extending the review period to May 29, 2024, for a thorough evaluation of the applications submitted by Grayscale and Bitwise.
Sources:
– SEC Filing
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