The US securities regulator, the Securities and Exchange Commission (SEC), has postponed its decision on permitting the New York Stock Exchange (NYSE) to offer options trading on spot Bitcoin (BTC) exchange-traded funds (ETFs).
As per the filing on April 8, the SEC’s decision will affect options trading for the Bitwise Bitcoin ETF (BITB), the Grayscale Bitcoin Trust (GBTC), and any other trust holding Bitcoin on the NYSE.
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change,” the securities regulator said.
The next deadline for the SEC to approve, deny, or further delay the proposed rule change on the NYSE is scheduled for May 29.
Last month, the SEC arrived at a similar decision concerning Nasdaq, which sought options trading for BlackRock’s iShares Bitcoin Trust (IBIT).
Options are financial instruments that offer traders leverage, enabling them to speculate on market direction.
For instance, if a trader anticipates a rise in Bitcoin’s price, they might purchase a “call option,” agreeing to buy 1 BTC at the current price in a month’s time by paying a premium, requiring less capital compared to buying 1 BTC outright.
Grayscale’s CEO, Michael Sonnenshein, along with another individual, advocated for the approval of this rule change in a letter to the SEC.
In a letter dated February 28, Sonnenshein argued against rejecting options trading on spot Bitcoin ETFs, highlighting the SEC’s prior approval of Bitcoin futures ETFs and spot Bitcoin ETFs on the NYSE.
“The natural next step is the approval of options on spot Bitcoin ETPs.”
Approving options for spot Bitcoin ETFs would also, according to Sonnenshein’s February 5 post on X, “contribute to a robust and healthy market.”
NYSE submitted a 19b-4 form proposing options trading on Bitcoin ETFs on January 12, while Nasdaq and Cboe made similar proposals on January 19—nine days following the SEC’s approval of spot Bitcoin ETFs on several stock exchanges.
