SEC Acknowledges Applications for Options Trading on Spot Bitcoin ETFs

• Nasdaq and the Cboe had proposed options trading on Bitcoin ETFs to the SEC.
• If the SEC chooses for a rushed review, options trading may be greenlit by February end.

The United States SEC acknowledged the application for options trading on spot Bitcoin ETFs within three days of its filing. The 19b-4s asking for authorization to trade options on spot Bitcoin ETFs have been acknowledged by the U.S. SEC, according to Bloomberg’s senior ETF analyst James Seyffart. The standard procedure at the SEC is far slower than this one.

Short Assessment Period

If the SEC chooses for a rushed review, options trading may be greenlit by the end of February, according to Seyffart’s speculation. He does, however, point out that a decision is not likely to be made until at least 27 days have passed. However, around September 21, 2024, is when we could anticipate the absolute latest ruling.

Nasdaq and the Cboe had proposed options trading on Bitcoin exchange-traded funds (ETFs) to the SEC. Importantly, the relevant 19b-4 submissions were made public on January 16, which means that the present assessment period is a mere three days old.

In order to list and trade options on BlackRock’s iShares Bitcoin Trust, Nasdaq has applied for a rule modification. One such exchange-traded product (ETP) that holds bitcoin was the subject of an application to the Cboe for option trading. Of the ten Bitcoin exchange-traded funds (ETFs) that the SEC recently greenlit, six have been launched by Cboe.

In response to questions on the expedited schedule, Seyffart stressed that this submission is far faster than previous 19b-4 instances. Based on his own experience, he mentions cases when comparable applications were processed in as short as 14 days.

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