Public Input Sought by SEC on Bitwise, Grayscale Bitcoin ETF Options
The United States Securities and Exchange Commission (SEC) has opened the floor for public comments regarding a proposed rule change that would allow the listing and trading of options for Bitcoin (BTC) exchange-traded funds (ETFs).
In a notice published on February 23 , the New York Stock Exchange (NYSE) requested a rule modification that would permit options trading on the Bitwise Bitcoin ETF (BITC), the Grayscale Bitcoin Trust (GBTC), and “any trust that holds Bitcoin.”
If the rule change is approved, the options would be traded “in the same manner as options on other ETFs (including commodities ETFs) on the Exchange,” as stated in the notice.
This means that the options would be subject to regulations governing criteria for listing, expiration dates, strike prices, minimum price changes, position and exercise limits, margin requirements, and procedures for customer accounts and trading suspensions.
BlackRock, an asset management firm, is also seeking approval for a similar policy change.
The company has filed for rule revisions to list options on its Bitcoin ETF in collaboration with the Chicago Board Options Exchange (CBOE).
Bloomberg ETF analyst James Seyffart predicts that the SEC’s decision on these proposals could come as early as September 2024.
The SEC has already acknowledged the 19b-4's requesting the ability to trade options on spot #Bitcoin ETFs. This is faster than SEC typically moves. Options could be approved before end of February if SEC wants to move fast?…
AT ABSOLUTE EARLIEST options still ~27+ days away pic.twitter.com/ohbvHgP2uO
— James Seyffart (@JSeyff) January 19, 2024
Options are financial derivatives products commonly used for portfolio hedging, generating income, or speculative
Read more on cryptonews.com
