SEC Delays Bitcoin ETF Options Evaluation

SEC delays evaluation of Grayscale and Bitwise’s Bitcoin ETF options, affecting potential NYSE listing.

The United States Securities and Exchange Commission (SEC) has extended its evaluation time, delaying the possibility of listing Grayscale and Bitwise’s Bitcoin exchange-traded fund (ETF) options on the NYSE.

Traders can use options, a financial instrument, to make directional wagers and leverage their investments.

Decisions on approval, disapproval, or initiating actions will now be considered at a later date, according to the regulatory authority. In order to give the proposed rule change enough time for deliberation, the Commission has decided that a longer timeframe is appropriate for the assessment.

They have scheduled May 29 as the forthcoming deadline for reviewing the NYSE’s proposed rule amendments.

Calls on the SEC to Authorize Options Trading on Spot Bitcoin ETFs—Grayscale CEO’s Appeal

Shortly after the SEC’s historic approval for the issuing of numerous spot Bitcoin ETFs and their listing on United States stock exchanges, the NYSE submitted a 19b-4 form to them earlier this year proposing options trading on Bitcoin ETFs.

Grayscale CEO Michael Sonnenshein recently voiced his support for the rule change, urging the SEC to accept it. Since they have previously authorized both spot and Bitcoin futures ETFs on the exchange, he stated in a letter that there was no reason to deny options trading on spot Bitcoin ETFs. Under these conditions, he stressed that it should be easy to approve options trading on spot Bitcoin ETPs.

These proposals, if approved, could introduce possibilities for spot Bitcoin ETFs, which could strengthen and improve the market as a whole.

The SEC delayed the approval of BlackRock’s spot Bitcoin ETF options trading application earlier this month, adding to the rejections of Bitwise and Grayscale. This setback impacted BlackRock’s application to Nasdaq to list and trade options on its spot Bitcoin ETF, which was pending approval. In January, Nasdaq also put forth a proposal.