SEC delays decision on options trading for spot Bitcoin ETFs

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The United States Securities and Exchange Commission (SEC) has pushed back its decision on whether to approve options trading on spot Bitcoin (BTC) exchange-traded funds (ETFs), granting itself an additional 45 days to evaluate the proposals.

According to a series of filings made on March 6, the SEC extended its review period for requests from the Cboe Exchange, the Miami International Securities Exchange, and Nasdaq to offer options on Bitcoin ETFs. The agency cited the need for “sufficient time” to consider and review the proposals, with the new deadline set for April 24.

The exchanges had initially filed for the listing of Bitcoin ETF options on January 25, triggering the SEC’s 45-day window to make a decision or defer it under current provisions from US securities laws.

The deferral allows the agency to utilize the maximum 90-day period allotted by law to reach a final determination on the matter.

Options are derivative products that provide traders with leverage and the ability to speculate on market movements. If approved, options trading on spot Bitcoin ETFs could open the door for increased institutional capital inflows into the Bitcoin market.

Analysts and industry experts have voiced their support for the approval of options trading on Bitcoin ETFs, claiming it would contribute to a more robust and healthy market ecosystem. In particular, Grayscale CEO Michael Sonnenshein rallied for support on the approval of Bitcoin ETF options, with the claim that such products contribute to a “robust and healthy” crypto market.

Meanwhile, the SEC has also been tasked with deciding on several spot Ethereum ETF proposals, with analysts predicting a potential approval timeline around the May 23 deadline for VanEck’s application.

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