US SEC Delays Decision on Spot Bitcoin ETF Options Once Again

US SEC Delays Decision on Spot Bitcoin ETF Options Once Again

The U.S. Securities and Exchange Commission (SEC) has announced another postponement in its decision on applications for spot Bitcoin ETF options.

In a recent filing, the SEC extended its timeline for considering the launch of options trading on the Bitcoin ETF while soliciting public comments. Interested parties have been given 21 days to provide comments and 35 days for rebuttals.

The agency has raised questions regarding whether options on spot Bitcoin ETFs should adhere to the same regulations as stocks. Specifically, the SEC is deliberating on issues such as whether options on specified Bitcoin Exchange-Traded Products (ETPs) should be subject to similar position limits as stock options and whether the available supply of Bitcoin in the market should factor into establishing position limits for options on Bitcoin ETPs.

Several exchanges have submitted applications to enable options trading on the recently approved spot Bitcoin ETFs. These include Cboe Exchange, Inc., BOX Exchange LLC, MIAX International Securities Exchange LLC, Nasdaq ISE, LLC, and NYSE American LLC.

In April, the SEC also postponed the consideration of applications from Grayscale and Bitwise to launch Bitcoin options ETFs. The regulator deemed it necessary to extend the review period for the proposed rule change. The next deadline for the SEC to make a decision on the launch of options-based ETFs is set for May 29.

Grayscale CEO Michael Sonnenshein has emphasized the importance of introducing an options market for spot Bitcoin ETFs. He expressed confidence that such a product would benefit both retail and institutional investors. Sonnenshein acknowledged that gaining SEC approval for this investment product would be a challenging process, comparing it to the complexities involved in launching cryptocurrency ETFs themselves.

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