Grayscale Pushes SEC for Options Approval on Bitcoin ETF

Published by

Qadir AK

March 1, 2024

In a bold move, Grayscale Investments, a major crypto asset manager, is urging the U.S. Securities and Exchange Commission (SEC) to approve options trading on its Grayscale Bitcoin Trust (GBTC) spot Bitcoin exchange-traded fund.

Grayscale CEO Michael Sonnenshein, in a direct letter to the SEC, argues that denying options on GBTC would “unfairly discriminate” against shareholders. He points out that the SEC has previously approved options on ETFs linked to Bitcoin futures.

The Importance of Options

Sonnenshein emphasizes the significance of options for GBTC and other spot Bitcoin exchange-traded products, stating,

“It is vital to the interests of GBTC and all spot Bitcoin [exchange-traded product] investors to access exchange-listed options on GBTC and other spot Bitcoin ETPs.”

Options, in this context, could facilitate price discovery, aid investors in navigating market conditions, and serve as risk management tools.

But the Challenges Don’t Stop

However, the road to approval for spot Bitcoin ETF options is complex. The SEC manages technical rule changes, while the Commodity Futures Trading Commission (CFTC) also has a say due to Bitcoin’s classification as a commodity. This dual regulatory oversight poses challenges for getting options on spot Bitcoin ETFs approved.

Timely Appeal

Grayscale’s plea to the SEC comes as the crypto market experiences significant growth. Bitcoin is set for a monthly gain of over 47%, surpassing the $64,000 mark. Approving options on GBTC at this time could attract new investors, providing more ways to participate in the dynamic cryptocurrency market.

Powerhouse Crypto – Bitcoin!

Despite facing resistance within the $62,905 to $68,212 supply zone, Bitcoin’s resilience is evident. Breaking the $65,664 midline is crucial for further growth. The Relative Strength Index (RSI) indicates ongoing bullish momentum, showing a positive market disposition.

As Grayscale actively engages with the SEC, the broader cryptocurrency market celebrates the surge in Bitcoin prices. The cryptocurrency is on track for its most substantial monthly gain since December 2020, reaching a level that draws scrutiny from regulatory bodies.

Grayscale’s call for options approval aligns seamlessly with the industry’s evolution. Would you agree?

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.