- The SEC extended the review period for the proposed rule change for options trading on spot Bitcoin ETF, pushing the decision deadline to May 29.
- Options trading provides investors with opportunities for speculation and hedging strategies. If approved, this move would mark a significant step in integrating digital assets into traditional financial markets.
Once again, the U.S. Securities and Exchange Commission has delayed its decision to offer options trading for the spot Bitcoin exchange-traded funds (ETFs) on the New York Stock Exchange. This move will directly impact funds such as the Grayscale Bitcoin ETF (GBTC), the Bitwise Bitcoin ETF (BITB), as well as NYSE-listed trusts holding Bitcoin.
The SEC announced on Monday, April 8, 2024, that it will extend the review period for the proposed rule change aimed at permitting options trading on Bitcoin ETFs. This decision reflects the regulator’s need for ample time to thoroughly assess the implications and details of the proposed amendment.
Decision on whether or not to allow options on the spot #Bitcoin ETFs has been delayed by SEC. pic.twitter.com/8brzSaw32c
— James Seyffart (@JSeyff) April 8, 2024
The SEC has set the next deadline to decide on the proposed rule change on the NYSE for May 29, 2024. This postponement aligns with a similar decision made last month concerning a request from Nasdaq, seeking authorization for options trading on BlackRock’s iShares Bitcoin Trust.
Industry Veterans support Options for Bitcoin ETFs
The proposed amendment aims to modify Rule 915, facilitating the listing and trading of options on specific Bitcoin ETFs like the Bitwise Bitcoin ETF and Grayscale Bitcoin Trust. Options provide investors with the opportunity to speculate on the price movement of underlying assets, enabling leverage and hedging strategies.
Initially submitted to the SEC on February 9, 2024, the proposal underwent a period of public comment before consideration.
The potential introduction of BTC ETF options trading has garnered significant attention within both traditional financial circles and the cryptocurrency community. Approval of such a proposal would signify a milestone in integrating digital assets into conventional financial markets, offering essential tools for risk management and market sentiment reflection.
Grayscale’s CEO, Michael Sonnenshein, highlighted the natural progression towards considering options on spot Bitcoin ETFs in his letter to the SEC. He referenced the precedent set by the approval of Bitcoin futures ETFs and spot Bitcoin ETFs.
BTC ETF Outflows Pick Up Speed
After a strong week of inflows per the Crypto News Flash report, the spot Bitcoin ETFs are losing steam again recording over $220 million of outflows on Monday, April 8. Spot Bitcoin exchange-traded funds (ETFs) in the United States experienced minimal capital influx, contributing to a day marked by substantial outflows, notably a $300 million decrease in the Grayscale Bitcoin Trust (GBTC).
Conversely, inflows have significantly diminished, with BITB leading with a recorded $40 million. This trend suggests investors are adopting a cautious approach in anticipation of the release of March CPI data.
The negative inflows have pushed the Bitcoin price back to $70,000 after rallying past $72,000 on Monday. After two months of strong inflows, the spot Bitcoin ETF market seems to have entered some consolidation phase. However, per the Crypto News Flash report, the Bitcoin ETF trading volumes also remained as high during BTC’s all-time high.
