NYSE American LLC has withdrawn its move to provide options trading on two BTC-based ETFs. The decision concerns the possibility of the approval of the Bitwise Bitcoin ETF and the Grayscale Bitcoin ETF. The Securities and Exchange Commission (SEC) did not decide on the proposal on July 19, 2024, and the exchange, therefore, withdrew it on August 9, 2024.
This followed other bourses, such as MIAX, MIAX Pearl, and BOX Exchange, withdrawing similar proposals. Cboe, however, pulled back on its initial withdrawal of the application and filed it again the previous week. This is a somewhat contradictory decision from the SEC since they permitted several spot Bitcoin ETFs in January from big companies such as BlackRock, Grayscale, and Fidelity.
NYSE Shifts Focus to Ethereum ETF Options
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Although this is a blow for NYSE American and its Bitcoin options, the exchange is not totally turning its back on cryptocurrency. The exchange has submitted a new proposal to list and trade the options on the physically settled Ethereum ETFs by Bitwise and Grayscale. This indicates a continuous attempt to include new cryptocurrency products in the legal frameworks, evidencing a constant but careful approach to digital asset derivatives.
The SEC’s sporadic and slow approval suggests that the authority is very critical in assessing cryptocurrency trading products. Other markets are also planning similar moves but have to wait for the SEC’s nod. These regulatory actions define the environment of cryptocurrency investment as the exchanges try to overcome compliance challenges and investors pay attention to digital assets.
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Also Read: ETH ETF outpaces Bitcoin ETF in institutional investment race
