Grayscale CEO Michael Sonnenshein urges regulators to greenlight options for spot Bitcoin ETFs. In a strong case advocating their necessity, he emphasized that options play a vital role by enabling price discovery and helping investors navigate market conditions, including generating income.
Sonnenshein highlighted that following the SEC’s approval of the initial Bitcoin futures ETF in October 2021, the listed options for the ETF became tradable immediately the next day, benefiting from automatic effectiveness and leveraging existing regulations.
However, this streamlined process doesn’t apply to commodity-based ETFs, like the recently sanctioned spot Bitcoin ETFs. These ETFs are subjected to a potentially prolonged review process akin to the 19b-4 procedure for spot Bitcoin ETFs themselves.
Citing the divergent regulatory treatment of similar product classes, the Grayscale CEO called for a level playing field. He stated that national exchanges have already submitted the required paperwork to amend listing standards and allow options on commodity-linked ETFs, including spot Bitcoin ETFs.
The SEC is currently reviewing applications for listed options on spot Bitcoin ETFs. It has specifically sought comments on BlackRock’s proposal with Cboe. A decision is expected by mid-February but may extend until September 2024.
Sonnenshein concluded his remarks by seeking fair regulatory oversight of spot Bitcoin ETFs and the broader crypto asset segment. Consistency in rule-making and approvals will likely enable greater participation, elevating cryptocurrencies toward mainstream adoption.
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