The CBOE Exchange has re-submitted its application for Bitcoin ETF options trading on Wall Street, responding to previous concerns raised by the U.S. Securities and Exchange Commission (SEC). The updated filing, issued last Thursday, aims to address SEC’s issues more comprehensively than prior submissions.
What Are SEC’s Main Concerns?
James Seyffart, an ETF strategist at Bloomberg, noted this new application seeks to mitigate the SEC’s worries regarding position limits and market manipulation. This development highlights the increasing demand for spot Bitcoin ETFs in traditional financial markets and the intense interest in options trading for these investment products.
How Will This Affect the Approval Timeline?
On August 8, the Nasdaq, NYSE, and CBOE exchanges withdrew their applications, causing market volatility. Although the SEC’s final decision was initially set for September 21, the new CBOE filing could restart the approval process. Seyffart remarked that while the exact outcomes are uncertain, the approval timeline might extend to the end of April.
Another Bloomberg strategist, Eric Balchunas, viewed the new submission as a positive sign, suggesting the SEC will likely engage with the exchange. This interaction is seen as a favorable development in the market.
Earlier this week, NYSE American also filed for options trading on three spot Ethereum ETFs despite prevailing market uncertainties, underscoring the growing significance of cryptocurrencies in financial markets.
Key Insights for Investors
- The CBOE’s updated application addresses specific SEC concerns, potentially easing the path for approval.
- The involvement of major exchanges like Nasdaq, NYSE, and CBOE indicates significant institutional interest in Bitcoin ETFs.
- Approval delays could extend to late April, requiring investors to monitor the situation closely.
- Growing institutional activity in crypto ETFs suggests increasing mainstream acceptance of digital assets.
Meanwhile, entries into spot Bitcoin ETFs are accelerating. BlackRock’s IBIT product leads with total entries reaching $201 million as of Thursday, while WisdomFlow’s BTCW ETF follows with $118 million in entries. Additionally, Bitcoin’s price surged over 8%, briefly surpassing $62,000 amid a robust bull market recovery.