SEC Delays Decision on Options Trading on Spot Bitcoin ETFs
The United States Securities and Exchange Commission (SEC) has delayed the decision to approve options trading on spot Bitcoin exchange-traded funds (ETFs).
The SEC extended the response deadline for the Cboe Exchange and the Miami International Securities Exchange , both of which filed bids to offer options on Bitcoin ETFs.
The agency has also postponed the decision on Nasdaq’s bid to offer options on BlackRock’s iShares Bitcoin Trust (IBIT), citing the need for more time to consider the request.
The filing deadline for the Bitcoin ETF options was January 25, and the SEC’s initial decision deadline was March 10.
However, the SEC has invoked its right to defer a decision, granting an additional 45 days under U.S. securities laws.
This means the SEC now has until April 24 to reach a final decision on options trading for Bitcoin ETFs.
Options are derivative products that provide traders with leverage, allowing them to make directional bets on the market.
For example, if a trader believes that Bitcoin’s price will rise, they can purchase a “call option” to buy 1 BTC at today’s price in a month’s time, putting down a smaller amount of money compared to buying 1 BTC outright.
If Bitcoin’s price increases during that month, the trader can exercise their option, buy Bitcoin at a lower price, and potentially sell it for a profit.
If Bitcoin’s price declines, the trader may choose to let the option contract expire and forfeit the premium paid.
Grayscale CEO Michael Sonnenshein has advocated for the approval of options for Bitcoin ETFs, stating that they contribute to a robust and healthy market.
Analysts, such as VettaFi’s Dave Nadig, predict that the introduction of Bitcoin ETF options will attract hedge
