Thomas Daniels
Trading derivatives based on Bitcoin (BTC) Exchange Traded Funds (ETFs) may soon see a rise, following the green light from the U.S. Securities and Exchange Commission (SEC). This move has enabled the listing of various funds classified as “non-security commodities” on American exchanges.
Nasdaq has taken proactive steps by filing 19b-4 forms with the SEC. These filings aim to modify listing regulations, paving the way for derivatives trading anchored in Bitcoin-based ETFs.
In response to these proposed regulatory alterations, the SEC has initiated a public consultation period, lasting 21 days, to gather public opinion and feedback. James Seyffart, an ETF specialist, has suggested that a decision on these applications could be made by the SEC as early as the end of February. However, there’s also a possibility of a delay until September.
Seyffart highlighted on X that the SEC’s usual response time to such inquiries is not particularly swift.
The introduction of options trading for spot Bitcoin ETFs is poised to open a new avenue for investors seeking Bitcoin exposure. These financial derivatives provide opportunities for speculation or protection against the volatility inherent in cryptocurrencies and other high-risk assets.
Should these options receive approval, they would join a growing array of Bitcoin-focused products in the market, following the endorsement of spot BTC ETFs. Notably, Direxion, a financial product provider, has already submitted proposals for five leveraged spot Bitcoin ETFs.
There is also a growing global interest in crypto ETFs. Hong Kong’s regulators and financial institutions are preparing to launch comparable products in the first quarter of this year. Authorities in Singapore and South Korea have expressed reservations regarding spot BTC funds, though there is a possibility of a shift in their stance.
The South Korean presidential office has urged local regulatory bodies to reevaluate their approach to cryptocurrencies, in light of the increasing demand for Bitcoin-related investment options.
