Grayscale CEO Michael Sonnenshein recently called on regulators to approve options for spot Bitcoin ETFs, emphasizing the benefits for investors. Exchange-traded options play a crucial role in price discovery and can help investors manage market conditions effectively or achieve specific outcomes.

Exchange-traded options are standardized contracts that allow buying or selling a financial asset at a predetermined price within a specified timeframe. These options offer flexibility for traders to speculate on or hedge against future price movements without the obligation to buy or sell the underlying asset.

Regulated by U.S. authorities such as the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), options are guaranteed by the Options Clearing Corporation (OCC) for transactions.

Sonnenshein highlighted the SEC’s approval of the first Bitcoin futures ETF in October 2021, which led to the trading of listed options for the ETF the next day. However, commodity-based ETFs like spot Bitcoin ETFs face a more extended review process, similar to the 19b-4 process applicable to the ETFs themselves.

Grayscale CEO advocated for equal treatment of similar products, referencing recent filings by the New York Stock Exchange (NYSE) and other exchanges to amend listing standards to include listed options for commodity-based ETFs, which would cover spot Bitcoin ETFs as well.

The SEC is currently reviewing applications for listed options on spot Bitcoin ETFs. Bloomberg ETF analyst Eric Balchunas indicated that the decision could come as soon as Feb. 15 or be extended to September 2024.

Sonnenshein’s push for fair treatment of the crypto asset class and spot Bitcoin ETFs aligns with the broader goal of regulatory clarity and equal opportunity in financial markets. Grayscale’s GBTC ETF, with $20.5 billion in assets under management as of Feb. 2, remains the largest spot Bitcoin ETF despite significant outflows.

For more news and updates on the cryptocurrency market, visit Global Crypto News.

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