NYSE American LLC has withdrawn its proposal to list and trade options on the Bitwise Bitcoin ETF and the Grayscale Bitcoin ETF, confirmed in a filing made on August 8, 2024.
The Bitwise ETF and the Grayscale Bitcoin ETF would have been able to list those options if the exchange had not already requested a regulation modification.
The filing stated, “On July 19, 2024, the Commission designated a longer time for Commission action on the proposal. On August 9, 2024, the Exchange withdrew the proposal.”
This action is in line with other exchanges’ comparable ones. The plans from BOX Exchange, MIAX Pearl, and MIAX to market options on spot Bitcoin ETFs were withdrawn.
Last week, the Cboe also retracted its proposal to list options on spot Bitcoin ETFs, but it was soon submitted again. The SEC may still be considering the feasibility of such listings, as shown by Cboe’s re-filing, which might be a sign of continued talks with the agency.
The SEC authorized some spot Bitcoin ETFs earlier in January 2024, including ones from well-known companies like Fidelity, Grayscale, and BlackRock. This approval marked a significant development in the ETF market.
NYSE American has changed the rules for options trading on spot Ethereum ETFs from Bitwise and Grayscale but it has withdrawn its proposal for Bitcoin ETFs. We’re still thinking about this proposition.
The withdrawal of proposals for options on Bitcoin ETFs by NYSE American signals a cautious regulatory stance from the SEC on cryptocurrency derivatives. This move reflects ongoing adjustments in the regulatory landscape, with exchanges and financial institutions keenly observing and adapting their strategies in response to evolving guidelines.
Also Read: NYSE Arca Withdraws Proposal to Allow Crypto ETF Options Trading
