The New York Stock Exchange’s Arca electronic exchange has decided to pull back a proposal that was introduced back in January aiming to allow options trading on commodity-based trusts Shares, including those tied to cryptocurrency exchange-traded funds (ETFs), according to an August 13 filing.
These shares include crypto ETFs like the Grayscale Bitcoin Trust (GBTC), which is one of the more recognized crypto investment products.
Earlier this year in February, Grayscale Investments sent a letter to the U.S. Securities and Exchange Commission (SEC), urging the agency to update its regulations and make it easier to approve options for ETFs tied to commodities like Bitcoin.
However, this report come just a few days after Cboe exchange recently refiled its application to list options for Bitcoin ETFs on August 8.
Meanwhile, on August 6, Nasdaq also requested SEC approval to list options on BlackRock’s iShares Ethereum Trust (ETHA).
As of now, investors in the U.S. are allowed to trade options on ETFs that track the performance of Bitcoin using derivatives but are unable to trade options on ETFs that directly hold Bitcoin.
Grayscale has argued that if trading options on ETFs linked to Bitcoin derivatives are allowed, the same should apply to ETFs holding Bitcoin itself. Approving such options would represent a significant step forward for crypto adoption in mainstream finance.
According to a survey by The Journal of Financial Planning, more than 10% of financial advisors actively used options to manage their clients’ portfolios in 2023.
Also Read: Morgan Stanley Faces Scrutiny Over Bitcoin ETF Push