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The regulatory authority will decide on the BTC options offerings of multiple exchanges and BlackRock’s IBIT. Its decision on ETH Spot ETF is another much-awaited event.
The United States Securities and Exchange Commission (SEC) announced that it has delayed its verdict on Bitcoin Exchange-Traded Funds (ETF) trading options offering. The decision is expected to come out at the end of April 2024.
Spot Bitcoin ETF news highlights
In a March 6 filing, the United States Securities and Exchange Commission (SEC) extended its timeline to decide on the derivative (option) of the Bitcoin Spot ETF.
The delay in making a decision was communicated in the SEC’s response to CBOE exchange and the Miami International Securities Exchange on their applications to deliver options trading on ETFs.
On January 25, 2024, CBOE exchange and Miami International Securities Exchange applied for listing Bitcoin ETF options trading, according to which SEC needs to make its first decision by March 10. As per Section 19(b)(2) of Act 4, the commission needs to propose a decision within 45 days of publication of notice of the filing and the final decision within 90 days of the timeframe.
Additionally, the commission has the full authority to reject, approve, or make changes in the proposal as per the laws and legislations.
The commission found it relevant to extend the timeline to make an appropriate decision. The commission is likely to announce on April 24, its decision on the approval, disapproval, or proposed rule change on the Bitcoin ETF options trading.
Moreover, the SEC also delayed the decisions on Nasdaq’s bid to deliver options trading on BlackRock’s iShares Bitcoin Trust (IBIT). It is considered one of the most successful ETFs as it received record levels of inflows among all the 11 BTC Spot ETFs that were approved at the start of the year.
The platform hit around $3.8 Billion in volume on Tuesday, setting a new trading day record.
The exchanges are expecting to permit individuals to buy and sell options on the products and are waiting for the SEC’s decision for the same.
About Bitcoin ETFs and options trading
Bitcoin ETF is a financial offering that enables individuals/ traders/ investors to gain exposure to the price oscillations of BTC without having the digital asset. Options trading, on the other hand, is a derivative product that provides traders leverage and allows them to make directional bets on the market.
On January 11, the concept was approved, and the SEC granted 11 eligible applicants to go ahead with the concept to trade on US exchanges. IBIT, Valkyrie Bitcoin Fund, ARK 21Shares Bitcoin ETF (ARKB), and Bitwise Bitcoin ETF (BITB) are a few of the applicants.
Additionally, the SEC is also preparing to decide on seven spot Ether (ETH) ETFs and is expected to announce decisions on May 23. Approval of the same will offer institutional exposure to Ethereum. Diversity, fluidity, regulatory compliance, and availability are a few of the major benefits of Eth ETF.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
