Bitcoin Options ETFs Could Potentially Receive Approval Within 27 Days
The U.S. Securities and Exchange Commission (SEC) is making swift progress in the options trading space for spot Bitcoin ETFs, with a potential decision expected by the end of February. Bloomberg analyst James Seyffart sheds light on this accelerated timeline, providing valuable insights into the complex regulatory environment.
The SEC has officially acknowledged the filing of 19b-4 for options products based on spot Bitcoin ETFs. Seyffart notes that the processing time for these filings is much faster than the SEC’s usual timelines, which typically take around 14 days. He predicts that an approval could be granted before the end of February, with the earliest decision possible within 27 days. The latest deadline for a decision is set for September 21, 2024, indicating a potential breakthrough in the coming weeks.
Several filings have been submitted, including SR-NYSEARCA-2024-06 by NYSE Arca, SR-ISE-2024-03 by Nasdaq ISE, LLC, and SR-CBOE-2024-005 by Cboe Exchange, Inc. Each filing seeks approval for options trading related to Bitcoin ETFs, and the public has been invited to share their comments within 21 days of publication in the Federal Register. This open invitation for public opinions adds transparency to the regulatory process.
Nasdaq’s proposal for options trading on BlackRock’s spot Bitcoin ETF is currently being reviewed by the SEC. The SEC has initiated a 21-day public comment period to consider amendments to the trading criteria that would enable options trading on iShares Bitcoin Trust.
In addition to Bitcoin, major firms like BlackRock and Fidelity are also seeking approval for spot Ethereum ETFs. Fidelity’s Ethereum Fund decision deadline has been extended until March 5. Fidelity cites a previous court ruling that questions the SEC’s inconsistency in approving futures-based products while rejecting spot crypto ETFs without clear rationale.
Overall, the SEC’s expedited consideration of options trading on spot Bitcoin ETFs and the ongoing discussions surrounding spot Ethereum ETFs indicate a significant development in the cryptocurrency investment landscape.