Key Points
- The US Securities and Exchange Commission (SEC) is seeking public opinion on the proposed rule change for Bitcoin ETP options trading.
- Financial firms and asset managers are seeking regulatory approval to list Bitcoin options on their ETPs.
The US SEC has initiated another consultation round on a proposed change in rules for trading options on Bitcoin ETPs.
The April 24 filing indicates that the securities regulator aims to gain a deeper understanding of how listing Bitcoin (BTC) options could impact the market, particularly during stressful times.
Understanding Bitcoin Options
Bitcoin options are financial tools that offer the buyer the choice, but not the obligation, to purchase or sell Bitcoin at a specific price by a set date. These are typically utilized by traders well-versed in option pricing and market trends. As with other investments, options trading carries risks and may not be suitable for all investors.
The SEC had previously sought public feedback on this rule change and included the received comments in its filing. Most comments emphasized how options on Bitcoin ETPs could enhance liquidity and boost market efficiency.
Financial Firms and Asset Managers Seek Approval
Several financial institutions, including Nasdaq and Cboe, have submitted proposals to the SEC for permission to trade Bitcoin options. Nasdaq’s application aims to list and trade options on BlackRock’s iShares Bitcoin Trust, while Cboe plans to offer options trading on various ETPs that hold Bitcoin.
Furthermore, asset managers like Bitwise and Grayscale are also seeking regulatory approval to list options on their Bitcoin ETFs through New York Stock Exchange applications.
Lastly, a report suggests that 1 in 6 new Base meme coins are scams, and 91% have vulnerabilities.