Spot Bitcoin ETF

Trading in Spot Bitcoin ETF Options Deferred by the SEC

The Securities and Exchange Commission published a notice Monday saying that it “designates May 29, 2024 as the date by which the Commission either approves or disapproves, or institutes proceedings to determine whether to disapprove,” which means the New York Stock Exchange can start listing spot bitcoin ETF options in 2024. The SEC hasn’t decided whether the exchange can list the ETFs yet. Before making a decision, the commission will review public comments. The ETFs would be the first of their kind in the country if approved.

Bitcoin ETFs Bitwise Bitcoin ETF and Grayscale Bitcoin Trust were named specifically, but they’re also open to “any trust that holds bitcoin.” The ETFs would trade on NYSE Arca. ETFs must be approved by the Securities and Exchange Commission (SEC) before trading can begin. Hopefully the SEC makes a decision soon on these ETFs.

The NYSE filed a request for options trading on Feb. 9. Before allowing public comment, the NYSE had to file a rule change. The regulator had 45 days to take comments and make a decision or delay again for up to 45 days, which it chose to do. Now the SEC will review the comments. The NYSE will start offering options trading soon if it’s approved.

Grayscale CEO Michael Sonnenshein and Georgetown University professor James Angel were the only two public commenters.

Trading options on spot bitcoin ETFs could be a big deal for the NYSE. For comparison, SPDR Gold Shares ETF, GLD, has 2.8 million open interest options contracts, but it’s important to note that GLD’s spot price is an order of magnitude higher than BITO’s. Spot bitcoin ETFs have a huge potential for trading volume if traders get access to them. As well as opening up a new revenue source, this could offer the exchange a new source of liquidity.


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Written By:
Penny Sommerfeld