SEC Pushes Back Opening of Options Trading for Spot Bitcoin ETFs

Crypto News– The United States Securities and Exchange Commission (SEC) has delayed its decision regarding the approval of options trading on spot Bitcoin exchange-traded funds (ETFs), potentially paving the way for increased institutional investment in Bitcoin.

SEC Pushes Back Opening of Options Trading for Spot Bitcoin ETFs

In a filing made on March 6, the SEC announced an extension of the time frame for responding to bids from Cboe Exchange and the Miami International Securities Exchange seeking to offer options on Bitcoin ETFs.

Additionally, the SEC postponed its decision on Nasdaq’s bid to offer options on BlackRock‘s iShares Bitcoin Trust (IBIT), stating the need for “sufficient time to consider” the request.

All three exchanges submitted applications to list Bitcoin ETF options on January 25, with the SEC’s initial decision deadline set for March 10. Under U.S. securities laws, the SEC has 45 days to decide or defer a decision on such matters.

The deferral grants the SEC an additional 45 days, reaching the maximum of 90 days allowed by law for reaching a final decision, which the SEC indicated would fall on April 24.

Options trading on Bitcoin ETFs would enable traders to speculate on Bitcoin’s price movements. For instance, a trader anticipating a rise in Bitcoin’s price could pay a premium to purchase a “call option,” agreeing to buy 1 BTC at today’s price in a month’s time, thereby investing less money upfront than required to buy 1 BTC outright.

Grayscale CEO Michael Sonnenshein recently advocated for the approval of options for Bitcoin ETFs, asserting that they would contribute to a robust and healthy market.

VettaFi analyst Dave Nadig highlighted in January that the introduction of Bitcoin ETF options markets could attract various hedge fund players into the space who were previously not directly involved in cryptocurrency speculation.

Nadig emphasized that such developments would offer new opportunities for those interested in engaging with Bitcoin indirectly within the traditional financial ecosystem.