The United States Securities and Exchange Commission (SEC) has chosen to delay its decision regarding options trading on Bitcoin exchange-traded funds (ETFs), which could potentially attract more institutional capital to Bitcoin. The SEC extended its response time to Cboe Exchange and the Miami International Securities Exchange, as well as Nasdaq’s bid to offer options on BlackRock’s iShares Bitcoin Trust. The SEC’s decision deadline was on March 10, but the deferral grants the agency an additional 45 days to reach a final decision by April 24. Options are derivative products that allow traders to speculate on the market with leverage. Grayscale CEO Michael Sonnenshein advocated for the approval of Bitcoin ETF options, claiming they contribute to a healthy market. Analysts predict that the approval of Bitcoin ETF options would attract hedge fund players who are not directly involved in the crypto ecosystem. The SEC recently approved 10 spot Bitcoin ETFs on their final day of decision-making. The SEC is currently evaluating seven spot Ether ETFs and is expected to make a decision by May 23, which is also the deadline for VanEck’s application. The SEC is also reviewing multiple leveraged Bitcoin ETFs, including those filed by Direxion, ProShares, and REX Shares.
SEC delays approval of spot Bitcoin ETFs' options trading