Following the SEC’s approval of the spot Bitcoin ETF, the NYSE filed an application with the SEC for options. Opening the door to options trading on spot Bitcoin ETFs will be a big deal for the NYSE. However, the SEC delayed its decision on whether to allow the NYSE to begin options trading on spot Bitcoin ETFs for another 45 days.
SEC postpones decision on spot Bitcoin ETF options
cryptokoin.comAs you follow from , the market welcomed the US SEC’s spot Bitcoin ETF approval with enthusiasm. Although the leading cryptocurrency Bitcoin remained unstable for a while, it later reached new peaks with strong purchases. Following the SEC’s ETF approval, options based on these products came to the table. However, the SEC is balking at making a decision. The SEC said in a statement on Monday that it has “designated May 29, 2024 as the date on which the Commission will approve or disapprove or initiate action to determine whether to approve” to allow the New York Stock Exchange to begin listing options on spot Bitcoin ETFs.
The two spot Bitcoin ETFs specifically mentioned were Bitwise Bitcoin ETF and Grayscale Bitcoin Trust. But the proposal also opens the door to “any trust holding Bitcoin.” The NYSE filed a filing on Feb. 9 asking the SEC to allow it to trade options. As a self-regulatory organization (SRO), the NYSE had to first file for a rule change and allow public comment. The regulator had 45 days to allow comments and reach a decision. However, the SEC used its other option, a 45-day postponement.
SEC requested public comment on the products!
Only two public comments were filed with the SEC. One of them is Grayscale CEO Michael Sonnenshein. Another is Professor James Angel from Georgetown University. “Dear SEC: Don’t you have better things to do than waste time staring at these rule applications?” Angel began his 13-page letter. He started by saying. He also went on to criticize the regulator’s handling of Bitcoin ETFs and crypto in general. The Georgetown scholar also noted that options are available on the ProShares Bitcoin Strategy (BITO) futures ETF and even the riskier leveraged 2x Bitcoin Strategy (BITX) Bitcoin futures ETF.
According to data from OptionsCharts.io, open interest in BITO options has reached approximately 1.1 million contracts. BITX’s open interest includes 78,000 contracts. Opening the door to options trading on spot Bitcoin ETFs will be a big deal for the NYSE. By comparison, the SPDR Gold Shares ETF GLD has 2.8 million option contracts in open interest. However, it should be noted that the spot price of GLD shares is much higher than that of BITO.
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