SEC delays ruling on Bitwise and Grayscale Bitcoin ETF proposals

The decision on whether to allow the New York Stock Exchange (NYSE) to offer options trading on spot Bitcoin ETFs has been postponed by the United States securities regulator. The Securities and Exchange Commission (SEC) announced that this delay will affect options trading on the Bitwise Bitcoin ETF (BITB), the Grayscale Bitcoin Trust (GBTC), and any other trust holding Bitcoin on the NYSE. The SEC stated that it needs more time to consider the proposed rule change, leading to a new deadline of May 29 for a decision on the NYSE. This follows a similar outcome for Nasdaq, which requested options trading on BlackRock’s iShares Bitcoin Trust (IBIT) last month. Options trading involves derivative products that offer traders leverage and the ability to make directional bets on the market. If approved, traders would have the opportunity to buy call options and agree to purchase Bitcoin at a future date, potentially making a profit if its price rises. Grayscale’s CEO, Michael Sonnenshein, is one of the individuals who wrote to the SEC requesting the approval of options trading on spot Bitcoin ETFs. Sonnenshein argued that since the SEC has already approved Bitcoin futures ETFs and spot Bitcoin ETFs on the NYSE, there is no reason to reject options trading. He also stated that the approval of options would contribute to a healthy market. The NYSE, Nasdaq, and Cboe all submitted proposals for options trading on Bitcoin ETFs in January, shortly after the SEC approved spot Bitcoin ETFs on multiple stock exchanges.