SEC delays approval for trading options on Bitcoin ETFs

The decision on whether to approve options trading on Bitcoin exchange-traded funds (ETFs) has been postponed by the United States Securities and Exchange Commission (SEC). This delay could potentially attract more institutional capital into the Bitcoin market. The SEC extended its response time to Cboe Exchange and the Miami International Securities Exchange, as well as Nasdaq’s bid to offer options on BlackRock’s iShares Bitcoin Trust. The filing, made on March 6, ensures that the SEC has enough time to consider the requests. The initial deadline for the decision was March 10, but the SEC’s deferral grants them an additional 45 days, with a final decision expected on April 24. Options are derivative products that allow traders to make bets on the market using leverage. If approved, Bitcoin ETF options could attract hedge fund players who are currently not directly speculating on cryptocurrencies. The SEC has already approved 10 spot Bitcoin ETFs for trading, and now they have to decide on seven spot Ether ETFs. Analysts speculate that the SEC may hold back until May 23, which is the deadline for VanEck’s ETF application. In addition to ETFs, the SEC is also reviewing multiple leveraged Bitcoin ETFs.