CBOE Re-Submits Filing to the U.S SEC, Aiming to Introduce Options Trading for Spot Bitcoin [BTC] ETFs Listed on Wall Street

This move comes after the company withdrew its initial application, making necessary regulatory adjustments before re-applying.

The Chicago Board Options Exchange (CBOE) has taken a crucial step in its endeavor to introduce options trading for spot bitcoin [BTC] exchange-traded funds (ETFs) listed on Wall Street.

On 8 August, the company re-submitted a filing with the U.S. Securities and Exchange Commission (SEC) to this effect.

This move comes after the CBOE initially withdrew its application, making necessary regulatory adjustments before re-applying.

The development marks a progression in the crypto industry’s pursuit of approval for options trading on spot BTC ETFs, an anticipation that has spanned seven months since the first applications were submitted by issuers and their exchanges.

Breaking down the filing

Bloomberg ETF analyst James Seyffart highlighted the significance of the re-submission, stating, “There’s definitely some movement on bitcoin ETF options.”

He went on to analyze the reasons for the delay in the approval process.

According to Seyffart, the original filing for spot BTC ETFs was notably concise, consisting of only 15 pages.

In contrast, the new filing is more expansive, totaling 44 pages.

This detail suggests that the SEC may have provided feedback or raised concerns about specific aspects of the initial filing.

“To me it means that the SEC likely gave some sort of feedback?” Seyffart noted.

Furthermore, the analyst’s deduction is that the SEC’s concerns likely pertained to matters of position limits (the maximum amount of an asset that an entity can hold) and risks of market manipulation.

To conclude, the expanded filing is likely to address these issues more comprehensively in an effort to meet the SEC’s requirements and advance toward approval.

However, Seyffart also expressed uncertainty regarding whether the SEC is actively engaging with the CBOE on the latest filing for spot bitcoin ETFs.

There is a concern that submitting this new, more detailed application might reset the approval process, pushing the decision deadline back to late April.

Yet, the analyst’s view is that if the SEC is indeed in discussions with the CBOE, the official deadline may become less impactful.

This is because the ongoing engagement could influence the timing or outcome of the decision.

“One downside here is that I think this restarts the clock. So deadline would move to some time at the end of April (Apr 25th-ish),” Seyffart noted.

The importance of options on spot BTC ETFs

The introduction of options on spot BTC ETFs marks a significant milestone for the cryptocurrency market.

By offering strategies like covered call writing, these options provide avenues for income generation while simultaneously managing risks.

In turn, this makes bitcoin investments more accessible to a broader spectrum of traditional investors.

This development not only has the potential to increase participation in the crypto market, but also underscores bitcoin’s growing legitimacy as a financial asset, equipped with sophisticated tools for both risk management and speculative trading.

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