Nasdaq Now Withdraws Bitcoin ETF Options Proposals Amid Skepticism Over SEC Approval

Key Points:

• Nasdaq ISE and other exchanges have withdrawn their proposals to list options on spot Bitcoin and Ethereum ETFs due to a lack of feedback from the SEC.
• Recent retractions by MIAX, NYSE, and others indicate a regulatory pause on approving Bitcoin ETF options trading, with Cboe re-filing its application.

Nasdaq ISE has pulled its proposals for the listing and trading of options on spot Bitcoin and Ethereum exchange-traded funds, or ETFs, according to filings with the Securities and Exchange Commission.

Read more: Bitcoin ETF Investment Is Getting Interested From Wall Street

Nasdaq ISE Withdraws Proposals for Options on Bitcoin and Ethereum ETFs

The development, disclosed on August 12, 2024, came months after inactivity and no comments following the proposal’s publication on Bitcoin ETF options.

This is part of a broader trend, as several other exchanges recoil with similar proposals in the recent past few days. MIAX, MIAX Pearl, and BOX Exchange each pulled back plans for listing Bitcoin ETF options, while the Cboe first withdrew before refiling the application, perhaps indicating ongoing engagement with the SEC.

Thursday saw the NYSE join in by withdrawing its proposal for options on the Bitwise Bitcoin ETF and the Grayscale Bitcoin ETF. These were clear pointers to the fact that the SEC was still wary of approving spot Bitcoin ETF options trading.

Little Certainty on Regulation as Exchanges Likely to Refile Bitcoin ETF Options Proposals

According to Bloomberg analyst James Seyffart, Nasdaq and NYSE could refile their proposals in a very short time. Quite obviously, readjustment is taking place from among the many recent withdrawals and future refilings for the proper positioning of Bitcoin ETF options against the evolving regime of regulation.

In the past, NYSE Arca, Cboe, and Nasdaq filed proposals with the SEC to list options on shares of their spot Bitcoin ETFs. The SEC has extended review periods in April and July.