SEC Delays Decision on BlackRock’s Bitcoin Options ETF

The United States Securities and Exchange Commission (SEC) has extended its decision timeline concerning the application for listing and trading options on BlackRock’s iShares Bitcoin ETF (IBIT), submitted by Nasdaq, as disclosed in a March 6 filing.

The proposal has entered a comment period, attracting insights from stakeholders. Five individuals have already contributed their feedback, advocating for the approval of options trading on BlackRock’s Bitcoin exchange-traded fund (ETF).

SEC’s April 24 Deadline

The SEC has set April 24 as the deadline for either approving, denying, or initiating proceedings to evaluate the proposed rule change. The extension aims to provide adequate time for thorough consideration of the matter.

In a separate filing, the SEC has deferred a decision on permitting the Chicago Board Options Exchange (Cboe) to offer options for spot Bitcoin ETFs until April 24.

Existing regulations allow Cboe to list and trade options on any exchange-traded product three days after its debut on registered exchanges. However, digital asset-backed funds, such as those linked to Bitcoin, operate under different regulations, as clarified by the platform in a statement issued on January 5.

Michael Sonnenshein, CEO of Grayscale, emphasized the urgency for the SEC to expedite the approval of options trading on spot Bitcoin ETFs. He highlighted that withholding this opportunity from shareholders and ETF investors would be detrimental.

The pending decisions by the SEC regarding options trading on BlackRock’s iShares Bitcoin ETF and Cboe’s spot Bitcoin ETFs hold significant implications for the cryptocurrency market. Stakeholders eagerly await the regulatory outcomes, which could shape the future landscape of digital asset investment options.