April 25, 2024 1:21 PM | 2 min read |
The wait for Bitcoin options trading continues as the U.S. Securities and Exchange Commission (SEC) has once again postponed its decision on proposals that would allow options on spot Bitcoin exchange-traded funds (ETFs).
WHat Happened: This news comes after multiple exchanges, including Cboe, MIAX, Nasdaq ISE, and NYSE American, filed to offer options trading on recently approved Bitcoin ETFs, The Block reported.
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In a recent filing, the SEC extended the period for public comment by 21 days, with an additional 14 days for rebuttal comments, totaling 35 days for feedback.
This move invites stakeholders and the public to weigh in on several critical aspects of how options on Bitcoin ETFs should be regulated.
One of the key questions raised by the agency was whether “options on the specified Bitcoin ETPs should be subject to the same position limits as options on stock, and whether the available supply in the markets for Bitcoin should be considered in establishing position limits for options on Bitcoin ETPs.”
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This call for input marks a continued pattern of the SEC taking a measured approach to integrating cryptocurrency products into the mainstream financial marketplace.
The commission had previously put off making a decision on this matter earlier in the month, indicating the complexity and potential risks associated with crypto-related financial instruments.
Feedback from previous comment periods suggested that allowing options trading on Bitcoin ETFs could provide significant benefits for investors, such as enhanced abilities to hedge positions and manage financial risk.
What’s Next: These considerations are part of the broader dialogue on how regulatory frameworks can evolve to safely include more sophisticated cryptocurrency trading tools while protecting investors.
As discussions on cryptocurrency regulations continue to unfold, Benzinga’s upcoming Future of Digital Assets event on Nov. 19 will likely address these developments.
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