Bitcoin ETF Options Continue To Be Carefully Considered The Possibility Of Approving By SEC

Key Points:

• The SEC delays decisions on spot Bitcoin ETF options, seeking public input on whether they should follow stock-like rules.
• Multiple exchanges, including Cboe and Nasdaq, apply for options trading on newly approved spot Bitcoin ETFs.

The U.S. Securities and Exchange Commission (SEC) has once again delayed several proposals regarding options on spot bitcoin exchange-traded funds (ETFs), seeking public input on the matter.

SEC Seeks Input on Bitcoin ETF Options Regulation

The agency is deliberating whether spot Bitcoin ETF options should adhere to the same regulations as stocks.

Numerous exchanges, including Cboe Exchange, Inc., BOX Exchange LLC, MIAX International Securities Exchange LLC, Nasdaq ISE, LLC, and NYSE American LLC, have filed spot Bitcoin ETF options trading. These filings were mentioned in the SEC’s recent filing, prompting various firms to prepare products enabling investors to hedge their cryptocurrency investments.

In April, the SEC postponed the consideration of Grayscale and Bitwise applications to launch Bitcoin ETF options, extending the review period. The next deadline for SEC action on options-based ETFs is May 29. The regulator also deferred Nasdaq’s request for options trading on BlackRock’s iShares Bitcoin Trust (IBIT) last month.

The SEC has invited public comments on the matter, with a deadline of 21 days for initial comments and 35 days for rebuttals.

Cryptocurrency Market Dynamics Amid SEC Delays

Options on ETFs function similarly to options on stocks, allowing investors to enter agreements to buy or sell assets at specified prices over set periods. Interest in options on Bitcoin funds has surged alongside the success of spot Bitcoin ETFs, which have attracted over $12 billion in inflows despite significant outflows from the Grayscale Bitcoin Trust (GBTC).

Meanwhile, the outlook for spot Ethereum ETFs appears not very positive, with industry insiders expecting rejections from the SEC following discouraging meetings.