SEC Delays Decision on Bitcoin ETF Options Proposal
The U.S. Securities and Exchange Commission, or SEC, has postponed its decision on the Cboe proposal seeking to trade options on a Bitcoin ETF.
CBOE (Chicago Board Options Exchange) initially filed to list and trade options on a Bitcoin ETF, which was just relaunched on January 11, 2024. The SEC announced on Wednesday (March 6, 2024) that they are delaying the decision on the proposed rule change until the end of April 2024.
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Options can be used for hedging risks, allowing parties to enter into contracts where they can buy or sell financial products at a specific price within a specified period.
Regarding this matter, CBOE did not immediately respond to the news of the delay. Generally, CBOE can offer options three days after an ETP starts trading on a national securities exchange such as Nasdaq or the New York Stock Exchange (NYSE).
CBOE is not the only exchange seeking to offer options. NYSE also filed to list "commodity-based trust shares."
Meanwhile, Nasdaq is seeking to list and trade options specifically on BlackRock’s iShares Bitcoin Trust. In its filing in January 2024, the exchange stated that options would provide investors with "lower-cost investment tools" while also offering hedge assets.
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