NYSE and Nasdaq Revoke Three Additional Requests for Cryptocurrency ETF Options Changes

Interest is rising in Bitcoin and Ethereum ETF options as new developments unfold.

Withdrawal of Requests

The New York Stock Exchange (NYSE) American and Nasdaq International Securities Exchange (ISE) have withdrawn three requests for rule changes that concerned the listing of options on Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs). These actions were documented in regulatory filings made after the market closed on August 14 and August 15.

This move reflects the ongoing activity surrounding spot BTC and ETH ETF options in the United States. Just a day earlier, on August 13, NYSE Arca also withdrew a request that aimed to pave the way for the listing of crypto ETF options.

Details on Withdrawn Listings

Nasdaq ISE withdrew its requests to permit the listing and trading of options for shares of Bitcoin and Ether trusts. Similarly, NYSE American withdrew requests to allow options trading on the Bitwise Bitcoin ETF, the Grayscale Bitcoin Trust (BTC), and similar trusts holding Bitcoin.

These filings come after the US Securities and Exchange Commission (SEC) stated in July that it needed more time to assess these proposals.

Comments from Nasdaq revealed their intention to prove that the shares of the proposed Bitcoin exchange-traded products (ETPs) are “widely held and actively traded,” which is a condition set by the exchanges’ rules.

Grayscale’s Advocacy for Change

In February, Grayscale, the largest crypto fund issuer managing around $25 billion in assets, urged the SEC to update its approach and approve applications for options on spot Bitcoin exchange-traded products, including the Grayscale Bitcoin Trust (GBTC).

Analysts’ Perspectives

Analysts consider these recent withdrawals as a sign of growing momentum towards the exchanges potentially coming to an understanding with the SEC regarding crypto ETF options.

• James Seyffart, an analyst at Bloomberg Intelligence, noted the movement on Bitcoin ETF options and hinted at possible SEC feedback.

Currently, investors in the US can trade options on ETFs that track the performance of BTC through derivatives, but not on ETFs that actually hold Bitcoin.

Grayscale’s letter highlighted a logical point: if investing in options for shares of products holding derivatives of an asset is acceptable, then so should options for shares of products that hold the asset itself.