US SEC postpones decision on spot Bitcoin ETF options

The U.S. SEC has again postponed its decision on applications for spot Bitcoin ETF options.

According to a recent filing, the SEC delayed its decision to launch options trading on the Bitcoin ETF while requesting public comment. The SEC said comments must be provided within the next 21 days and rebuttals within 35 days.

The agency has questioned whether options on spot Bitcoin ETFs should follow the same rules as stocks.

“Whether options on the specified Bitcoin ETPs should be subject to the same position limits as options on stock, and whether the available supply in the markets for bitcoin should be considered in establishing position limits for options on Bitcoin ETPs.”

SEC filing

A few exchanges have applied to allow options trading on the newly approved spot Bitcoin ETFs, including Cboe Exchange, Inc., BOX Exchange LLC, MIAX International Securities Exchange LLC, Nasdaq ISE, LLC, and NYSE American LLC.

In April, the SEC also delayed consideration of Grayscale and Bitwise applications to launch Bitcoin options ETFs. The regulator considered it appropriate to assign a longer period to take action on the proposed rule change. The next deadline for the SEC to approve or delay the launch of options-based ETFs is May 29.

In February, Grayscale CEO Michael Sonnenshein announced the need to launch an options market for spot Bitcoin ETFs. Sonnenshein expressed confidence that this product will benefit both retail and institutional investors.

According to Sonnenshein, companies have a long way to go before the SEC approves this investment product. In terms of complexity, he compared it to launching cryptocurrency ETFs themselves.