SEC Delays Decision on Bitcoin ETF Options

SEC Opens Public Comment: 'Should Bitcoin ETP options position limits be applied similar to stock options, and should the available supply of BTC in the market be considered when setting limits position for Bitcoin ETP options?'

A variety of exchanges have submitted applications for spot Bitcoin ETF options trading licenses including Cboe Exchange, Inc., BOX Exchange LLC, MIAX International Securities Exchange LLC, Nasdaq ISE, LLC and NYSE American LLC.

The SEC said the deadline for submitting comments is 21 days and the rebuttal motion is 35 days.

The proposals have received a number of comments over the past few months. Some people believe that trading spot Bitcoin ETF options will help investors hedge and manage the risk of their positions.

The SEC approved 11 Bitcoin spot ETFs in January, attracting a total cumulative net inflow of more than $12 billion to date.

The next 'natural step' is to approve options for those products, asserted Grayscale CEO Michael Sonnenshein.

Kareem Winters

Update 26 April 2024