As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of regulatory hurdles and market volatility. The recent withdrawal of NYSE American LLC’s proposal to list spot Bitcoin ETF options doesn’t come as a surprise, given the SEC’s historic cautious approach towards cryptocurrencies.
The NYSE American LLC has retracted its request for a regulatory amendment, aiming to offer Bitcoin ETF options trading on the spot market.
Based on documents submitted to the U.S. Securities and Exchange Commission, the main trading platform has requested approval for both the Bitwise Bitcoin (BTC) ETF and a conversion of Grayscale’s Bitcoin ETF.
The NYSE American has suggested introducing options on Exchange-Traded Funds (ETFs) based on the spot price of Ethereum (ETH), which are issued by the two providers, similarly to what BlackRock has done with its own fund.
As a crypto investor, I eagerly awaited the potential listing of spot BTC ETF options on NYSE American, which I had hoped would take place after their rule change proposal was filed on July 19th. However, my anticipation turned into disappointment when they withdrew the application on Aug. 9th. The formal withdrawal was confirmed on Aug. 14th, and it was disclosed to the public on Aug. 15th, as per the Commission’s website.
Cboe axed its spot Bitcoin ETF options bid as well last week but promptly re-submitted its application. Cboe’s action may indicate ongoing dialogue and feedback from the SEC.
Bitcoin ETF options likely in Q4
Over the past fortnight, I’ve noticed that alternative trading platforms such as BOX Exchange and MIAX Pearl have decided to shelve their proposals for amendments regarding spot Bitcoin ETFs. As a researcher following this space closely, this move has piqued my interest and led me to delve deeper into understanding the underlying reasons behind these decisions.
multiple times, the Securities and Exchange Commission (SEC) has postponed making decisions about filings submitted by Cboe, Nasdaq, and other stock exchanges, which has left both investors and companies submitting these filings feeling exasperated.
Supporters of cryptocurrency ETFs, like Michael Sonnenshein (former Grayscale CEO), have encouraged the regulatory body to give their approval for various investment choices. Sonnenshein stated that this feature would provide investors with numerous ways to diversify their portfolios.
According to ETF specialist James Seyffart, it’s possible that Bitcoin spot ETF options could become available during the last quarter of this year. However, if the Securities and Exchange Commission (SEC) gives its approval, the issuers would also require clearance from regulatory bodies such as the Commodity Futures Trading Commission and the Office of the Comptroller of the Currency, Seyffart mentioned on August 8th.
Based on our analysis, it seems likely that Bitcoin ETF decisions could be made by the end of this year. The Securities and Exchange Commission (SEC) has a deadline for their decision around September 21st, but there are still additional steps to follow from the Options Clearing Corporation (OCC) and Commodity Futures Trading Commission (CFTC). It’s worth noting that there are already several Bitcoin and Ethereum ETF options available, including leveraged ones. @EricBalchunas
— James Seyffart (@JSeyff) August 8, 2024
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2024-08-15 20:23