Bitcoin ETF

Bitcoin

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>US lawmakers are urging the SEC to approve options trading on Bitcoin ETPs.</li> 
 <li>The SEC has initiated a new consultation round on the proposed rule change to permit options trading on Bitcoin funds.</li> 
</ul>  
<p>US legislators are reportedly advocating for the Securities and Exchange Commission (SEC) to greenlight options trading on <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/">Bitcoin</a> exchange-traded products (ETPs).</p> 
<p>Representatives Mike Flood and Wiley Nickel have written a letter to the SEC’s chair, Gary Gensler, asking him to stop the unfair treatment of crypto funds.</p> 
<h2 id="options-trading-on-bitcoin-etps">Options Trading on Bitcoin ETPs</h2> 
<p>Their letter states, “We urge you, without delay, to approve options on spot Bitcoin ETPs or to provide an explanation for the Commission’s difference in treatment between options for Bitcoin futures ETFs — which are currently trading — and options for the spot Bitcoin ETPs.”</p> 
<p>Options are financial tools that allow the buyer the choice, but not the obligation, to buy or sell an asset, in this case, Bitcoin, at a set price by a specific date.</p> 
<p>These instruments are often used to hedge against price fluctuations, limit potential losses, and allow investors to earn additional income through strategies.</p> 
<p>Flood and Nickel claim that this approval is vital for the investors that the SEC “seeks to protect.”</p> 
<h2 id="sec-s-response">SEC’s Response</h2> 
<p>The SEC has been delaying decisions on applications from the New York Stock Exchange, Nasdaq, and Cboe Global Markets that were submitted in January.</p> 
<p>Nasdaq has applied to list and trade options on BlackRock’s iShares Bitcoin Trust, while Cboe wants to offer options trading on various BTC funds.</p> 
<p>The NYSE, on the other hand, plans to trade options on Bitwise Bitcoin ETF (BITB), Grayscale Bitcoin Trusts (GBTC), and any other trusts holding Bitcoin.</p> 
<p>Recently, the SEC started a new consultation round on the proposed rule change to allow options trading on Bitcoin funds and has asked for public feedback on Bitcoin options trading.</p> 
<p>According to a filing on April 24, the SEC wants to investigate how Bitcoin options might affect market stability, especially in volatile conditions.</p> 
<p>The agency is also looking into whether current market surveillance and enforcement practices are adequate for managing the complexities of Bitcoin options.</p> 
<p>Participants have been asked to submit initial comments by May 15, 2024, and rebuttal comments by May 29, 2024.</p>

Call from US Legislators: SEC to Greenlight Bitcoin Options Trading

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