- Background
- Proposal Withdrawal
- Opinions and Arguments
The New York Stock Exchange’s Arca exchange has pulled back a proposal from January to allow options trading on commodity trust shares, including those tied to cryptocurrency ETFs.
Background
Earlier this year in February, Grayscale Investments sent a letter to the U.S. Securities and Exchange Commission (SEC), urging the agency to update its regulations and ease approvals for options on ETFs tied to commodities like Bitcoin.
Proposal Withdrawal
This report comes just days after the Cboe exchange refiled its application to list options for Bitcoin ETFs on August 8, and Nasdaq requested SEC approval to list options on BlackRock’s iShares Ethereum Trust on August 6.
Opinions and Arguments
Grayscale has argued that if options on ETFs linked to Bitcoin derivatives are allowed, the same should apply to ETFs holding Bitcoin itself. Approving such options would be a significant step forward for crypto adoption in mainstream finance. According to a survey by The Journal of Financial Planning, more than 10% of financial advisors actively used options to manage their clients’ portfolios in 2023.
Currently, investors in the U.S. are allowed to trade options on ETFs that track Bitcoin performance using derivatives but not directly hold Bitcoin.
