SEC Initiates Consultations on Rule Change for Bitcoin Trading Options
The United States Securities and Exchange Commission (SEC) initiated a new phase of discussions on April 24 regarding a proposed rule alteration for the trading of options on Bitcoin exchange-traded funds (ETFs) while also inviting public input on the matter.
Multiple exchanges are looking to trade options on the newly approved spot bitcoin ETFs, though they have been met with delays.
As outlined in the filing, the SEC will investigate the potential impacts of introducing Bitcoin options trading on the broader market, particularly during periods of market turbulence. The review will scrutinize whether exchanges’ current surveillance and enforcement mechanisms are sufficient to manage the distinctive characteristics of Bitcoin options.
Various exchanges, including Cboe Exchange, Inc., BOX Exchange LLC, MIAX International Securities Exchange LLC, Nasdaq ISE, LLC, and NYSE American LLC, have submitted requests to enable options trading on recently approved spot bitcoin ETFs, as disclosed in the SEC’s filing published on Thursday.
Nasdaq’s application would list and trade options tied to BlackRock’s iShares Bitcoin Trust, while Cboe intends to facilitate options trading across a spectrum of ETPs holding Bitcoin.
The SEC has extended the review period for allowing options trading on Grayscale and Bitwise Bitcoin ETFs, with a new decision date set for May 29.#SEC #BTCETFhttps://t.co/5HCxjgTaEh
— Cryptonews.com (@cryptonews) April 9, 2024
Interested parties are invited to submit their initial comments within 21 days following the official registration of the document, setting the final deadline for May 15. Additionally, rebuttal comments may be submitted until May 29.
The agency also questioned whether options trading on
Read more on cryptonews.com
