Choices buying and selling for spot Bitcoin ETFs could also be up after a Securities and Trade Fee nod allowed a number of “non-security commodity” funds to checklist on U.S. exchanges.
Nasdaq submitted 19b-4 filings with the SEC to amend itemizing guidelines permitting buying and selling derivatives on ETFs underpinned by Bitcoin (BTC).
Following the proposed rule adjustments, the SEC has acknowledged the requests, opening a 21-day window for public feedback and suggestions. ETF knowledgeable James Seyffart opined that the SEC may subject a choice on these filings by the tip of February; nevertheless the decision may additionally be delayed till September.
The SEC doesn’t often reply as rapidly to those kinds of requests, Seyffart noted on X.
Choices on spot BTC ETFs may unlock one other channel for traders to entry Bitcoin publicity. These derivatives permit merchants to invest or hedge in opposition to volatility, a market phenomenon carefully related to cryptocurrencies and different danger belongings.
If authorised, choices would be part of the swathe of Bitcoin-related merchandise which have entered markets shortly after spot BTC ETFs had been authorised. Monetary merchandise supplier Direxion already filed for 5 leveraged spot Bitcoin ETFs.
Elevated curiosity in crypto ETFs has additionally unfold past U.S. soil, with Hong Kong regulators and establishments gearing as much as launch related merchandise in Q1 this yr. Watchdogs in Singapore and South Korea have cautioned in opposition to spot BTC funds, though officers might push for a unique view.
South Korea’s presidential workplace implored native regulatory businesses to reassess their crypto stance amid rising demand for BTC-related funding automobiles.