SEC Extends Timeline For Grayscale and Bitwise’s Spot Bitcoin ETF Options Trading Applications
In Brief
SEC delayed its review period regarding the potential listing of Grayscale and Bitwise’s Bitcoin ETF options on the NYSE.
United States Securities and Exchange Commission (SEC) extended its review period regarding the potential listing of asset management companies Grayscale and Bitwise‘s Bitcoin exchange-traded fund (ETF) options on the New York Stock Exchange (NYSE).
Options are financial instruments that enable traders to utilize leverage and make directional bets on the market.
The regulatory body has announced an extension of the decision-making timeframe regarding the approval, disapproval, or initiation of proceedings. The Commission deems it suitable to allocate a longer duration to assess the proposed rule change thoroughly, ensuring ample time for consideration.
The upcoming deadline set by the SEC for reviewing the proposed rule changes by the NYSE is May 29.
Grayscale CEO Urges SEC to Approve Options Trading on Spot Bitcoin ETFs
The NYSE submitted a 19b-4 form to the SEC outlining a proposal to introduce options trading on Bitcoin ETFs earlier this year shortly after the landmark approval by the SEC for the issuance of multiple spot Bitcoin ETFs and their listing on United States stock exchanges.
Recently, Michael Sonnenshein, CEO of Grayscale, urged the SEC to approve the rule change. In a letter, he argued that there was no justification for rejecting options trading on spot Bitcoin ETFs, especially since the SEC had already approved spot Bitcoin ETFs and Bitcoin futures ETFs on the exchange. He emphasized that under these circumstances, approving options trading on spot Bitcoin exchange-traded products (ETPs) should be straightforward.
The approval of these applications would potentially enhance the market’s strength and overall health by introducing options for spot Bitcoin ETFs.
In addition to the rejections of Grayscale and Bitwise applications, the SEC has postponed BlackRock’s spot Bitcoin ETF options trading application earlier this month. The delay affected BlackRock’s request for approval to permit Nasdaq to list and trade options on its spot Bitcoin ETF. Nasdaq had also submitted a proposal in January.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
