SEC Delays Decision on NYSE Bitcoin Options Trading

The U.S. Securities and Exchange Commission (SEC) has rescheduled the decision on NYSE’s options trading on the spot Bitcoin ETF New York Stock Exchange (NYSE). This sudden drop could be a setback for businesses that provide Bitcoin trading options, affecting their ability to trade on popular Bitcoin investment platforms like the Bitwise Bitcoin ETF (BITB) and the Grayscale Bitcoin Trust (GBTC).

Securities And Exchange Commission Release Note

SEC said that it needs to thoroughly examine the reasons for the proposed rule change, which was the basis of its ruling dated April 8. The SEC extension deadline for the decision is set to May 29th which can be credited as an approval or decline of options trading on Bitcoin ETFs on the NYSE.

Options trading opens the possibility of sophisticated strategies for traders like leverage and speculation that help to extrapolate future Bitcoin price trajectory. Call options may be purchased by traders, which will allow them to speculate on the upside and downside respectively, creating more investment alternatives.

Grayscale CEO Michael Sonnenshein has strongly supported the move to permit options trading on spot Bitcoin ETFs. He believes this will boost market liquidity and overall market health. However, the CFTC’s approval and listing of Bitcoin futures ETFs on the NYSE left the question of options-trading ETFs pending.

Also Read: Terraform Labs Found Liable for Fraud by SEC

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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