SEC delays decision on Bitcoin ETF options trading

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on trading options on bitcoin exchange-traded funds (ETFs) and invited public comment on the matter, CryptoNewsLand reported today. The SEC emphasized that public input is essential in determining the direction of this financial product. According to the SEC announcement, public comments are due in 21 days, with an additional 14 days allowed for rebuttal comments. Cboe Exchange, BOX Exchange LLC, MIAX International Securities Exchange LLC, Nasdaq ISE, LLC, and NYSE American LLC have proposed to introduce options trading on bitcoin spot ETFs.

The SEC is interested in whether these Bitcoin ETF options should be regulated similarly to stock options. Questions have been raised about whether the same position limits that apply to stocks should apply to these ETF options, and whether the market supply of bitcoin should affect these limits. In recent months, the idea of allowing options trading on Bitcoin ETFs has gained some support, with proponents arguing that such a move would provide investors with a better mechanism for hedging and risk management.

This viewpoint was also supported in previous public comments submitted to the SEC. Allowing options trading on Bitcoin ETFs would be a step toward maturing the cryptocurrency market, which has seen other commodities such as gold grow through this route.