10 Apr

The decision by the U.S. Securities and Exchange Commission (SEC) regarding the approval or disapproval of the New York Stock Exchange's introduction of options trading on spot Bitcoin (BTC) ETFs has been postponed. This action was announced by the regulator in a document dated April 8.

The Bitwise Bitcoin ETF (BITB), the Grayscale Bitcoin Trust (GBTC), and any other trust holding Bitcoin listed on the NYSE are notably impacted by the SEC's postponement in options trading. Two comments were sent to the SEC after the proposed rule change was posted in the Federal Register for public comment in February.

The current regulations require the regulator to make a decision within 45 days of the publishing of the proposed rule change notice, or up to 90 days in the event of an extension. By Sunday, April 14, 2024, the first forty-five days following the notification of this proposed rule change are due. The panel is, nevertheless, delaying its decision by forty-five days.

The paper states that in order to guarantee careful review of the proposal, the commission believes it necessary to extend the deadline for making a decision on the proposed rule change. The SEC has until May 29 to decide whether to accept or reject the proposed rule change after this delay.

Notably, Michael Sonnenshein, the CEO of Grayscale, is one of two people who wrote to the SEC urging them to approve the rule change.

In a letter dated February 28, Sonnenshein argued that there was no justification for denying options trading on spot Bitcoin ETFs because the SEC had already approved Bitcoin futures ETFs and spot Bitcoin ETFs on the NYSE. The author said, "The approval of options on spot Bitcoin ETPs is the natural next step."

April 2024, Cryptoniteuae

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