Grayscale Urges SEC to Grant Bitcoin ETF Options Approval

Grayscale, a prominent crypto asset manager, is seeking the approval of the U.S. Securities and Exchange Commission (SEC) to introduce options trading on its Grayscale Bitcoin Trust (GBTC) Bitcoin exchange-traded fund. This move comes at a time when Bitcoin has experienced a significant increase in value, potentially reaching a gain of over 47%.

In a letter directly addressed to the SEC, Grayscale CEO Michael Sonnenshein argues that denying options on GBTC would be “unfairly discriminatory” towards shareholders. He highlights the fact that the SEC has previously approved options on ETFs linked to Bitcoin futures.

Sonnenshein emphasizes the importance of options for GBTC and other spot Bitcoin exchange-traded products, stating that they are vital for price discovery, assisting investors in navigating market conditions, and managing risk.

However, there are challenges in obtaining approval for spot Bitcoin ETF options. The SEC oversees technical rule changes, while the Commodity Futures Trading Commission (CFTC) also has a say in the matter due to Bitcoin’s classification as a commodity. This dual regulatory oversight poses obstacles in getting options on spot Bitcoin ETFs approved.

Grayscale’s plea to the SEC comes during a period of significant growth in the crypto market, with Bitcoin poised to achieve its largest monthly gain since December 2020, surpassing the $64,000 mark. Approving options on GBTC at this time could attract new investors and provide more opportunities to participate in the dynamic cryptocurrency market.

Despite facing resistance within the $62,905 to $68,212 supply zone, Bitcoin’s resilience is evident. Breaking the $65,664 midline is crucial for further growth. The Relative Strength Index (RSI) indicates ongoing bullish momentum, reflecting a positive market outlook.

As Grayscale actively engages with the SEC, the broader cryptocurrency market celebrates the surge in Bitcoin prices. However, this level of growth also draws scrutiny from regulatory bodies.

Grayscale’s call for options approval aligns seamlessly with the industry’s evolution, reflecting the changing landscape of cryptocurrency.