The SEC has delayed making a choice on the NYSE’s plan to allow options trading on Bitcoin ETFs that trade in real-time.
These trusts and ETFs, specifically the Grayscale Bitcoin Trust and Bitwise Bitcoin ETF, are impacted directly because they own Bitcoin that is traded on the New York Stock Exchange (NYSE).
SEC Delays Decision on Spot BTC ETF Options Trading
The SEC mentioned in its April 8 document that it would need more time to make a decision on the proposed rule change, allowing ample time for thorough consideration. It’s important to note that the SEC has until May 29 to act on the suggested change – delaying it, approving it, or rejecting it.
In February 2024, a proposal to amend Rule 915 at the SEC was put forward, which included the possibility of trading options based on certain Bitcoin ETFs. Following this submission, the public was invited to share their thoughts on the matter.
Investment tools called options give people a chance to wager on the price changes of base assets, providing both an opportunity for risk management through hedging and potential amplification via leverage.
Last month, Nasdaq was informed that the decision on implementing options trading for BlackRock’s iShares Bitcoin Trust (IBIT), both Grayscale and Bitwise versions, would take the same amount of time.
Previously, on March 6, the regulatory body postponed making a decision on the applications from CBOE exchange and Miami International Securities Exchange to list Bitcoin spot ETFs.
Grayscale CEO Urges SEC for Spot Bitcoin ETF Options
Michael Sonnenshein, the CEO of Grayscale, was among the duo who petitioned the SEC for modifying the rule concerning options trading.
On February 28, Sonnenshein penned a letter suggesting that the SEC should authorize options trading on Bitcoin spot ETFs, reasoning that since the regulatory body had previously given its approval for both futures and spot ETFs on the NYSE, it was only logical to do so.
In a blog post on February 5, Sonnenshein expressed that the availability of Bitcoin spot ETFs might result in a thriving and vigorous market.
Currently, the SEC has yet to make a decision on the seven proposed Ethereum ETFs, which they have pushed back to May 23 for consideration, coincidentally the same date for reviewing VanEck’s application.
This year, there’s been a surge in interest for Bitcoin ETFs that track the spot market, extending beyond the US borders. Most recently, Chinese equity funds based on the mainland have submitted applications to launch these ETFs through their subsidiaries in Hong Kong. Harvest Fund Management is one of these funds, which has been eagerly waiting for approval from Hong Kong’s Securities & Futures Commission (SFC) since January.
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2024-04-10 07:14