The SEC has extended its review period for potential Bitcoin ETF options offered by Grayscale and Bitwise on the NYSE. This decision aims to ensure a thorough evaluation of proposed rule changes and has set a new deadline for review by May 29.
Grayscale’s CEO advocates for approval, citing previous ETF approvals. The delay also impacts BlackRock’s application, affecting Nasdaq’s listing and trading options on its Bitcoin ETF.
In March 2024, the SEC postponed its decision regarding options trading for Bitcoin ETFs. This delay impacted proposals from Cboe Exchange Inc. and Nasdaq ISE, as well as BlackRock’s iShares Bitcoin Trust.
These postponements, detailed in SEC announcements, highlight the regulator’s cautious approach to overseeing crypto-related product expansion.
The proposals aimed to introduce derivatives allowing traders to speculate on future gains or hedge against potential losses.
Investors could pay a premium to enter contracts with parties, often facilitated by exchanges, granting the right (but not obligation) to buy specific assets—such as spot Bitcoin ETFs—at predetermined prices on future dates, irrespective of market prices.
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