SEC delays NYSE's Bitcoin ETF options proposal review, extending the decision deadline for Bitwise and Grayscale ETFs to May 29, 2024.
Source: coingape.com
HISTORICAL POINTS
- SEC cites the need for full research and delays the decision on Bitcoin ETF possibilities until May 29, 2024.
- The proposal seeks to permit options trading on the NYSE for Bitwise and Grayscale Bitcoin ETFs.
- The CEO of Grayscale promotes options on Bitcoin ETFs and points to previous SEC approvals.
Regarding the New York Stock Exchange's request to allow option trading on spot Bitcoin Exchange-Traded Funds (ETFs), the Securities and Exchange Commission (SEC) of the United States has postponed making a decision.
The Bitwise Bitcoin ETF, the Grayscale Bitcoin Trust, and any other trusts that hold Bitcoin listed on the NYSE will all be immediately impacted by this change in trading tactics.
Decision on Bitcoin ETFs for Options Trading
The SEC has postponed deciding whether or not to permit options on the spot for Ethereum exchange-traded funds. screenshot.twitter.com/8brzSaw32c— April 8, 2024, James Seyffart (@JSeyff)
May 29, 2024, has been set as the next deadline by which the SEC must determine whether to accept, reject, or postpone the rule change that has been requested by the NYSE. This delay is in line with a similar decision that was made earlier this month on a request by Nasdaq for authorization to allow options trading on BlackRock's iShares Bitcoin Trust.
The Idea and Its Context
The proposal under consideration would amend Rule 915 to allow for the listing and trading of options on two particular Bitcoin ETFs: Grayscale Bitcoin Trust and Bitwise Bitcoin ETF. Options are a type of financial derivative that lets investors make predictions about the direction in which the underlying assets will move, which makes leveraging and hedging strategies easier.
On February 9, 2024, the plan was initially filed with the SEC. It was then made available for public comment. The SEC's announcement to extend the review time suggests that it is taking a cautious approach to overseeing sophisticated financial products connected to cryptocurrency.
Industry Response and Expectations
In the financial and cryptocurrency worlds, there has been a lot of discussion about the potential for Bitcoin ETF options trading. If this plan is accepted, it will represent a significant advancement in the process of integrating digital assets into traditional financial markets and provide appropriate instruments for risk management and market reflection.
Concurrently, using the approval of Bitcoin futures ETFs and spot Bitcoin ETFs as precedent, Grayscale CEO Michael Sonnenshein argued in his letter to the SEC for the logical progression of the consideration of options on spot Bitcoin ETFs.
