As someone who closely follows the crypto and ETF markets, I can’t help but feel frustrated by yet another delay in the SEC’s decision on applications for spot Bitcoin ETF options. The postponement is not unexpected, given the regulatory hurdles that come with introducing new investment products, especially those involving cryptocurrencies.
The U.S. SEC has again postponed its decision on applications for spot Bitcoin ETF options.
Based on a recent report, the Securities and Exchange Commission (SEC) has postponed its plan to introduce options trading on a Bitcoin Exchange-Traded Fund (ETF), inviting public feedback in the meantime. The SEC set a deadline of 21 days for submitting comments, with rebuttals due within an additional 35 days.
The agency is pondering if the trading mechanics for Bitcoin ETFs bought on the spot market should adhere to the same regulations as traditional stocks.
“Should the option positions on Bitcoin Exchange-Traded Products (ETPs) be restricted similarly to options on stocks, taking into account the unique market dynamics of Bitcoin?”
SEC filing
Some negotiations have resulted in permitting alternatives for trading spot Bitcoin ETFs on the recently sanctioned exchanges such as Cboe Exchange, BOX Exchange, MIAX International Securities Exchange, Nasdaq ISE, and NYSE American.
In April, the SEC chose to postpone deciding on Grayscale and Bitwise’s applications to introduce Bitcoin options ETFs. The SEC deemed it necessary to allow more time before making a decision on the proposed rule change. The new deadline for the SEC to act on these ETF proposals is May 29.
In February, Michael Sonnenshein, the CEO of Grayscale, proposed the introduction of an options market for exchange-traded funds (ETFs) based on spot Bitcoin. Sonnensheig showed faith in the potential value this offering would bring to both individual and institutional investors.
Moving forward, I strongly believe that both the crypto and ETF sectors should prioritize the establishment of a strong market for Bitcoin options on listed spot Bitcoin ETFs. While Grayscale Bitcoin Trust (GBTC) has been available since 2015, it hasn’t had the benefit of an accompanying options market.— Sonnenshein (@Sonnenshein) February 5, 2024
From my perspective, Sonnenshein points out that there is still a significant journey for companies aiming to get the SEC’s approval for their investment product. He draws an analogy with the intricacy involved in bringing cryptocurrency Exchange-Traded Funds (ETFs) to market as a reference to the complexity of this undertaking.
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2024-04-25 18:42