Grayscale‘s CEO Michael Sonnenshein stated in a declaration on February 5th that he has requested the regulatory authorities to approve options for spot Bitcoin exchange-traded funds (ETFs).
In a message posted on the X social media platform, Sonnenshein said,
“I think it’s never been more important […] to advocate for the development of a robust listed options market for spot Bitcoin ETFs. Although GBTC has been in the public market since 2015, it was never accompanied by listed options, as they aren’t a feature of the OTC Market.”
He also emphasized that similar products should be treated fairly, stating,
“The same way bitcoin futures ETFs and spot bitcoin ETFs should treated the same, so too should listed options on these products.”
Sonnenshein disclosed that the New York Stock Exchange (NYSE) and other leading securities exchanges have recently applied to allow options trading on commodity-based ETFs like GBTC.
He mentioned that the U.S. Securities and Exchange Commission (SEC) needs to evaluate these applications, noting that options for Bitcoin futures ETFs were quickly approved, but options for spot Bitcoin ETFs require a more extensive approval process.
Sonnenshein argued that options benefit investors by facilitating price discovery, providing better navigation during market fluctuations, and aiding in income generation. He highlighted that this offers advantages for both individual and institutional investors.
The SEC May Decide on Bitcoin ETF Options by 2025
The U.S. Securities and Exchange Commission (SEC) is reviewing a series of spot Bitcoin ETF applications. The agency opened public comments for BlackRock’s Nasdaq-listed fund and several funds listed on Cboe BZX on January 19th.
Bloomberg ETF analyst James Seyffart predicts that a decision could be made between February and September 2024. According to Reuters, the decision could be delayed until December 2024; this could stem from the possibility of requiring approval from both the SEC and the Commodity Futures Trading Commission (CFTC).
On the other hand, the SEC approved various spot Bitcoin ETFs on January 10th, one of which was for Grayscale.
Grayscale’s GBTC ETF, created through the transformation of an existing fund, boasts being one of the largest spot Bitcoin ETFs in the market with $20.5 billion in assets under management as of February 2nd, but it also faces significant outflows.