Financial products built on cryptocurrency are now subject to new regulations. The Securities and Exchange Commission (SEC) of the United States has postponed determining applications for spot Bitcoin ETF options.
In a recent filing, the SEC said it would postpone making a judgment regarding the commencement of options trading on the BTC ETF and asked for public feedback. As per the agency’s guidelines, rebuttals can be submitted within 35 days, while comments need to be submitted within 21 days.
The SEC is debating whether options on spot Bitcoin ETFs should be subject to the same laws as conventional stocks.
Whether options on the specified Bitcoin ETPs should be subject to the same position limits as options on stock, and whether the available supply in the markets for bitcoin should be considered in establishing position limits for options on Bitcoin ETPs.
SEC filing
Numerous exchanges have submitted applications to trade options on the newly authorized spot Bitcoin ETFs. This group comprises well-known companies such as Cboe Exchange, Inc., NYSE American LLC, BOX Exchange LLC, MIAX International Securities Exchange LLC, and Nasdaq ISE, LLC.
Bitcoin Options ETF Decision Deadline Extended Following April Precedent
This new delay comes after the SEC postponed assessing Bitwise and Grayscale’s applications to launch BTC options ETFs in April. The regulator declared that a lengthier evaluation period was necessary for the proposed rule modification. The SEC has set a deadline of May 29th for approving or further postponing the launch of exchange-traded funds (ETFs) based on options.
Grayscale CEO Michael Sonnenshein has made a strong case for establishing an options market for spot BTC ETFs. Sonnenshein assured that individual and institutional investors might benefit from this solution.
Sonnenshein pointed out that businesses must overcome substantial regulatory barriers for the SEC to approve these investment products. He compared the complexity of establishing options-based ETFs and the challenges of implementing BTC ETFs.
The postponement demonstrates the SEC’s cautious evaluation of these offerings and the ongoing regulatory monitoring of cryptocurrency-based financial instruments. As stakeholders wait for further information, the future of spot BTC ETF choices is still unknown, and regulatory decisions might drastically change the Bitcoin investment options that are accessible in the US.
