NYSE has retracted its application to list and trade options on the Bitwise Bitcoin ETF (BITB) and the Grayscale Bitcoin Trust (GBTC).
The New York Stock Exchange (NYSE) has retracted its application to list and trade options on the Bitwise Bitcoin ETF (BITB) and the Grayscale Bitcoin Trust (GBTC). This decision, documented in a filing with the US Securities and Exchange Commission (SEC), is a part of the ongoing regulatory journey of Bitcoin-related financial products.
The NYSE originally submitted its 19b-4 form on January 12, 2024, which proposed the introduction of options trading on Bitcoin ETFs. Following closely, both Nasdaq and Cboe submitted similar proposals on January 19, just days after the SEC had approved spot Bitcoin ETFs for listing on various stock exchanges.
However, the road to approval was far from straightforward. After the NYSE proposal was published for public comment in February, the SEC repeatedly extended its review period. By April 2024, the SEC had initiated formal proceedings to gather public feedback. Despite this, the NYSE decided to withdraw its application on August 9, 2024, before the SEC reached a final decision.
Other Withdrawals
It is important to note that the Commission delayed its decision-making process on multiple occasions. The NYSE’s withdrawal suggests that the exchange may have anticipated further delays or potential hurdles in gaining approval.
Interestingly, last week, another exchange giant, Cboe, also withdrew its application for options trading but quickly re-filed with a revised and more detailed proposal. According to James Seyffart, a Bloomberg analyst, this move might reset the timeline, pushing the deadline for a decision to late April 2025.
Moreover, earlier this month, three other exchanges – BOX Exchange LLC, MIAX Pearl LLC, and Miami International Securities Exchange, LLC – also pulled back their proposals to allow options trading on Bitcoin ETF shares.
Options, as financial derivatives, provide investors with the right – but not the obligation – to purchase or sell an asset at a fixed price within a certain timeframe. In the context of Bitcoin ETFs, these options could enable investors to bet on the price fluctuations of a Bitcoin ETF, all while avoiding direct involvement with the cryptocurrency.
Bitcoin Spot ETFs
The launch of spot Bitcoin ETFs in January this year became one of the most successful ETF introductions in history, drawing widespread attention and capital from investors. Since their launch, these products have attracted $17.33 billion in net inflows. Moreover, they hold a total of $51.99 billion in all assets. On August 15, these financial funds cumulatively recorded a net inflow of $11.11 million.
Meanwhile, Bitcoin is currently trading around $58,400, down by around 4% in the past seven days. The cryptocurrency’s market cap currently stands at $1.15 trillion. BTC is down by over 20% from its all-time peak of $73,750, achieved in March this year.
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