CBOE Exchange, listed on Wall Street, has made a fresh application for option trading concerning spot Bitcoin ETFs. Retracting its prior submission last Thursday, CBOE provided a more updated and detailed application aimed at allaying the concerns of the U.S. Securities and Exchange Commission (SEC).

Addressing SEC Concerns

James Seyffart, an ETF strategist at Bloomberg, highlighted that this new application by CBOE is an attempt to address SEC's worries regarding position limits and potential market manipulation. The interest in spot Bitcoin ETFs is evidently rising in traditional financial markets, with a significant demand for options trading in these investment instruments.

The unexpected withdrawal of applications by Nasdaq, NYSE, and CBOE on Thursday, August 8, prompted market fluctuations. While the SEC had initially set the final decision date for September 21, CBOE's latest application might restart the approval process. Seyffart cautioned about definitive conclusions on this matter, suggesting possible communications between CBOE and the SEC that could affect the proceedings. He also highlighted the potential extension of the approval period for the new application till the end of April.

Eric Balchunas, another strategist at Bloomberg, viewed CBOE's latest submission as a positive indicator, foreseeing communication between the SEC and the exchange. This development is seen as favorable in the market.

At the beginning of this week, NYSE American applied for options trading for three spot Ethereum ETFs, despite market uncertainties, signifying the increasing relevance of cryptocurrencies in the financial domain.

Rising Entry Momentum in Spot Bitcoin ETFs

Moreover, there has been a resurgence in entries into Spot Bitcoin ETFs. Leading the way in this sphere with the IBIT product, BlackRock saw cumulative entries reaching $201 million on Thursday. IBIT emerged as the most favored ETF with $164.5 million in entries, while WisdomFlow's BTCW ETF followed closely with $118 million in entries.

In parallel to these developments, Bitcoin exhibited a robust bull rally, surging by over 8% and momentarily surpassing the $62,000 threshold.