Grayscale Urges SEC for Spot Bitcoin ETF Options Approval
Grayscale is calling on the US Securities and Exchange Commission to approve options on its spot Bitcoin exchange-traded fund, aiming to expand access to a broader range of investors.
CEO Michael Sonnenshein said in a letter Wednesday that denying options on its Grayscale Bitcoin Trust would unfairly disadvantage its shareholders, Reuters reported. He emphasized that the SEC has previously authorized options on ETFs linked to Bitcoin futures.
“It is vital to the interests of GBTC and all spot Bitcoin [exchange-traded product] investors to access exchange-listed options on GBTC and other spot Bitcoin ETPs,” Sonnenshein wrote.
Options are contracts that give the holder the right to buy or sell an asset at a set price in the future. Options on a spot Bitcoin ETF would let investors buy or sell these contracts based on how they think the price of the Bitcoin ETF will change.
For instance, if someone thinks the price will go up, they might buy a type of option called a call option. Yet, getting approval for these products isn’t simple and might drag on for months.
Sonnenshein added that options could aid in determining prices for the shares of the new ETFs, helping investors adapt to market conditions, hedge risks, and generate income, per the report.
If approved, these would expand the regulatory scope around Bitcoin by enabling more regulated market players like contract merchants and broker-dealers to engage in trading these products, according to Sonnenshein.
The letter comes as Bitcoin has surged beyond $60,000, nearing a record high, driven by an influx of funds into ETFs. Concurrently, spot Bitcoin ETF trading volumes surged to over $7.5b on Wednesday, according to The Block.
On Thursday, Grayscale’s spot Bitcoin
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