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SEC Postpones Decision on Bitcoin ETF Options Trading
The U.S. Securities and Exchange Commission (SEC) has delayed its decision regarding options trading for Bitcoin exchange-traded funds (ETFs) offered by Grayscale and Bitwise. The Commission has decided to extend the review period for the applications to list the trading of Bitcoin ETF options.
New Decision Date Set
According to the latest filing on April 8, the SEC has designated May 29, 2024, as the new deadline for taking action on the proposed rule change. This extension allows the Commission sufficient time to consider the applications thoroughly.
Approval of First Bitcoin ETFs
On Jan. 10, a total of 11 Bitcoin ETFs were approved and listed on the New York Stock Exchange (NYSE) and Nasdaq. These approvals marked a significant step in enhancing cryptocurrency accessibility for the public and introducing new investment opportunities.
Deferred Applications by Cboe and Nasdaq
In March 2024, the SEC postponed decisions on options trading for Bitcoin ETFs proposed by Cboe Exchange Inc. and Nasdaq ISE. These applications aimed to offer options linked to ETFs holding Bitcoin and BlackRock’s iShares Bitcoin Trust, respectively.
The postponements reflect the SEC’s cautious approach to regulating crypto-related products and introducing derivatives for traders to speculate on future gains or hedge against potential losses.
Investors can enter into contracts with other parties through exchanges, setting future dates to buy specific assets like spot Bitcoin ETFs at predetermined prices, providing flexibility in managing investment risks.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
