The highly anticipated launch of spot Bitcoin ETFs on the New York Stock Exchange has hit a roadblock as the United States Securities and Exchange Commission announces a delay in their decision.
SEC Delays Decision
The Securities and Exchange Commission has thrown a major curveball in the world of Bitcoin trading. The highly anticipated Bitwise Bitcoin ETF (BITB) and the renowned Grayscale Bitcoin Trust (GBTC) are now in limbo due to the SEC’s unexpected delay. And that’s not all – the fate of the CBOE Exchange and the Miami International Securities Exchange also hangs in the balance until late April.
The regulator stated,
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change.”
The Securities and Exchange Commission has announced that it will be delving deep into the motives behind the proposed rule change, which served as the cornerstone of their decision. With the new deadline set for May 29th, the commission holds the power to either give the green light or reject the trading of Bitcoin ETFs on the prestigious New York Stock Exchange.
Community Urges Approval
Grayscale CEO, Michael Sonnenshein, boldly sent a letter to the Securities and Exchange Commission on February 28th, urging them to approve a game-changing rule change. With passion and conviction, Sonnenshein argued that the SEC should have no hesitation in allowing options trading on spot Bitcoin ETFs, especially since they have already given the green light to Bitcoin futures ETFs and spot Bitcoin ETFs on the prestigious New York Stock Exchange.
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According to Sonnenshein, the approval of options for spot Bitcoin ETFs could help build a stronger and healthier market.
“As we look ahead, I think it’s never been more important for the #crypto and ETF communities alike to advocate for the development of a robust listed options market for spot #bitcoin ETFs. Although $GBTC has been in the public market since 2015, it was never accompanied by listed options, as they aren’t a feature of the OTC Market.”
These financial instruments offer traders the opportunity to make bold, directional predictions on the market. Imagine being able to ride the Bitcoin wave without breaking the bank – that’s exactly what a call option allows you to do. By paying a premium, you can secure the right to purchase 1 BTC at the current price in a month, while only putting down a fraction of the cost.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.