As a seasoned crypto investor with a decade of experience under my belt, I must admit that the recent developments in the options trading landscape for Bitcoin ETFs have left me both intrigued and slightly perplexed. The NYSE’s Arca exchange deciding to withdraw their proposal is certainly a setback, but it’s far from the end of the story.
The Arca electronic exchange, which is part of the New York Stock Exchange, has withdrawn a plan they proposed in January that aimed to enable options trading for commodity trust shares, such as those linked to cryptocurrency ETFs. This decision was made public through a document submitted on August 13.
These shares include crypto ETFs like the Grayscale Bitcoin Trust (GBTC), which is one of the more recognized crypto investment products.
In February of this year, Grayscale Investments wrote a letter to the U.S. Securities and Exchange Commission (SEC) advocating that they revise their rules, aiming to streamline the process of authorizing exchange-traded funds (ETFs) that track commodities such as Bitcoin.
Yet, this report emerged merely a few days subsequent to Cboe’s resubmission of the application aiming to list Bitcoin ETF options on August 8.
On August 6th, Nasdaq applied for SEC approval to trade options for the BlackRock iShares Ethereum Trust (ETHA).
Currently, American investors can engage in options trading for ETFs that mirror Bitcoin’s performance via derivatives, yet they don’t have the option to trade options on ETFs that physically possess Bitcoin.
Grayscale proposes that if it’s permissible to trade options based on ETFs connected to Bitcoin derivative contracts, the same rule should apply to ETFs directly invested in Bitcoin. Granting this approval would be a substantial stride towards integrating cryptocurrency into traditional financial markets.
Based on a study conducted by The Journal of Financial Planning, it was found that over 10% of financial advisors were actively employing options strategies for managing client portfolios in the year 2023.
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2024-08-15 02:45