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The U.S. Securities and Exchange Commission (SEC) has delayed its ruling on the approval of options trading for Bitcoin exchange-traded funds (ETFs) proposed by Grayscale and Bitwise.
As per the SEC’s recent filing dated April 8, the Commission has opted to extend the timeframe for reviewing the applications submitted by Grayscale and Bitwise for listing their Bitcoin ETF options.
SEC Sets May 29 as New Decision Deadline
“The Commission deems it suitable to allocate a longer timeframe to take action on the proposed rule change to ensure it has adequate time to evaluate the proposed rule change,” the filing states.
In accordance with Section 19(b)(2) of the Act, the SEC has established May 29, 2024, as the date by which it will either approve or reject, or commence proceedings to determine whether to reject, the applications.
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On January 10, a total of 11 Bitcoin ETFs were authorized as the initial group of their kind, listed on the New York Stock Exchange (NYSE) and Nasdaq. These financial instruments improved the accessibility of cryptocurrency for the general public, offering new investment opportunities.
Postponed Applications from Cboe and Nasdaq
The SEC initially postponed its decision regarding options trading for Bitcoin ETFs in March 2024. This delay impacted proposals from both Cboe Exchange Inc. and Nasdaq ISE, which aimed to provide options linked to ETFs that hold Bitcoin and BlackRock’s iShares Bitcoin Trust, respectively.
Details regarding these delays were outlined in the SEC’s announcements, reflecting the regulator’s careful approach to managing the growth of crypto-related products.
These proposals were intended to introduce derivatives that traders could utilize to speculate on future profits or to hedge against potential losses.
By paying a premium, an investor can enter into a contract with another party, usually facilitated by an exchange, that specifies a future date at which the investor has the right, but not the obligation, to purchase a specific asset, such as spot Bitcoin ETFs, at a set price regardless of the market price at that time.
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