Nasdaq and NYSE abruptly announce the suspension of their plans for Bitcoin ETF options, which will result in a delay in the broader availability of the crypto market.
The long-awaited path to Bitcoin ETFs Options on traditional exchanges has encountered yet another impediment.
The SEC filings, which were published on August 14 and 15, respectively, represent a setback for investors who were anticipating more accessible exposure to the world’s largest cryptocurrency through traditional investment channels.
Nasdaq and the NYSE had initially proposed rule modifications to facilitate the trading of options on the Bitwise Bitcoin ETF and the Grayscale Bitcoin Trust. The SEC had been reviewing these proposals since February and March, respectively, and had extended its review periods in April and July.
This action takes place immediately after CBOE, another significant exchange, withdrew its own application to trade Bitcoin ETF options earlier this month. Nevertheless, CBOE has already submitted a revised proposal, in contrast to Nasdaq and NYSE.
However, industry analyst James Seyffart anticipates that Nasdaq and NYSE will adopt the same approach in the upcoming weeks. While the precise reasons for the withdrawals are still uncertain, the SEC’s rigorous regulatory environment for crypto-related products is likely to be a contributing factor.
Investor interest in Bitcoin remains robust, despite these setbacks. After experiencing net outflows the previous day, data from Farside Investors indicates that Bitcoin ETF flows transitioned to positive territory on Thursday. The Grayscale Bitcoin Trust experienced a decrease in outflows to $25 million, while its Bitcoin Mini Trust attracted $13.7 million in inflows.
Although the withdrawal of these ETF options proposals is unquestionably a disappointment, it does not inherently indicate the end of the road for Bitcoin ETFs. There is a high probability that new opportunities for investors will arise in the future, as the crypto industry continues to expand dramatically.
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