Decision on spot bitcoin ETF options delayed by SEC

SEC Postpones Decision on Spot Bitcoin ETF Options Requests, Sets April 4 Deadline

In a recent development, the U.S. Securities and Exchange Commission (SEC) has opted to defer its decision on two requests seeking approval for options on spot Bitcoin exchange-traded funds (ETFs) until April 4. This decision follows the successful launch of similar products by nine issuers, excluding Grayscale's GBTC.

A filing dated March 6 reveals that the SEC has delayed the approval, denial, or initiation of rule change processes for Nasdaq's application to list and trade options on BlackRock's iShares Bitcoin ETF (IBIT). The comment period for this proposal is currently open, with five individuals already providing feedback urging the SEC to give the green light to options trading on BlackRock's spot Bitcoin (BTC) ETF. Nasdaq submitted the request in January, shortly after the SEC approved Bitcoin-backed funds from reputable issuers such as BlackRock, Fidelity, and ARK 21Shares.

The SEC has set April 24 as the deadline to make a decision on whether to approve, disapprove, or initiate proceedings to determine the fate of the proposed rule change. The official SEC filing states, "The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change."

In addition to BlackRock's proposal, the SEC has also postponed a decision regarding the Chicago Board Options Exchange (Cboe) and its potential offering of spot Bitcoin ETF options. A separate filing indicates that this decision is now slated for April 24 as well.

Existing regulations permit Cboe to list and trade options on any exchange-traded product at least three days after the fund debuts on registered exchanges. Clarifying its stance on digital asset-backed funds like Bitcoin, the platform stated on January 5 that such funds operate outside the purview of these regulations.

Michael Sonnenshein, CEO of Grayscale, advocated for the swift approval of options trading on spot Bitcoin ETFs in the previous month. He emphasized that denying shareholders and ETF investors access to this financial tool would be a disservice.

Oleg Dimitrov publication: "Decision on spot bitcoin ETF options delayed by SEC" was written for 24crypto.news

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