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Regulators
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May 3, 2024

Two US Representatives Urge the SEC To Approve Options on Spot Bitcoin Exchange-Traded Funds: Report

By Rhodilee Jean Dolor

A pair of bipartisan US congressmen are reportedly asking the U.S. Securities and Exchange Commission (SEC) to greenlight options trading on spot Bitcoin (BTC) exchange-traded funds (ETFs).

Citing a letter sent to SEC chair Gary Gensler, Axios reports that Representatives Mike Flood (R-NE) and Wiley Nickel (D-NC) say that approving options trading on Bitcoin ETFs is critical and crucial to investors that the securities watchdog seeks to protect.

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Reads the document, according to Axios,

“We urge you, without delay, to approve options on spot Bitcoin ETPs or to provide an explanation for the Commission’s difference in treatment between options for Bitcoin futures ETFs—which are currently trading—and options for the spot Bitcoin ETPs (exchange-traded products).” 

Several exchanges, including Cboe, BOX, MIAX, Nasdaq ISE, and NYSE American, have filed with the SEC to offer options trading on the new Bitcoin ETFs.

The SEC has not yet acted on the exchanges’ proposals and is currently soliciting public comment on rule changes that will permit options trading on Bitcoin funds.

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The agency says the proposed rule changes should align with the provisions in the Securities Exchange Act that aim to protect investors and the public interest.

Says the SEC in a notice dated April 24,

“[T]he Commission invites the written views of interested persons concerning whether the proposed rule changes are consistent with Section 6(b)(5), or any other provision of the Act, or the rules and regulations thereunder.”

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