Exchanges Await SEC Decision on Trading of Bitcoin ETF Options

d a fascinating day on Thursday as Cboe, Nasdaq, and NYSE withdrew their prior applications. Why the three exchanges appeared to act in concert is partly clear. However, Cboe’s decision to refile suggests the rationale behind the choice was more nuanced.

The Securities and Exchange Commission (SEC) has received applications from several exchanges to trade Bitcoin exchange-traded fund (ETF) options. According to a post by James Seyffart, three exchanges withdrew their requests to market Bitcoin ETF options on that site.

However, he said, the most well-known exchanges, such as Nasdaq and the New York Stock Exchange (NYSE), are still included on the list.

According to his analysis, there has been movement in the Bitcoin ETF options applications since the Chicago Board Options Exchange (CBOE) withdrew its application. CBOE, however, submitted a wholly revised and fresh application.

UPDATE: There's definitely some movement on Bitcoin ETF options. CBOE just withdrew their application for options on spot #Bitcoin ETFs. Which sounds like a bad thing at first… But at the same time they just re-filed a brand new and updated application https://t.co/L8qYTDXzPb pic.twitter.com/8BQG6JMROn

Seyffart countered that it was impossible to know if the SEC communicated with the CBOE on this matter and that it may just be another attempt to “restart the clock” and push out the deadline for making a judgment until late April 2025.

According to Bloomberg experts, the fourth quarter of this year is when Bitcoin ETF options are expected to be released, he said. The SEC judgment is due in full by September 21st, “but more action from the CFTC [Commodity Futures Trading Commission] and OCC [Office of the Comptroller of the Currency] is required after that,” he stated.

Exchanges Await SEC Decision on Trading of Bitcoin ETF Options

The market had a fascinating day on Thursday as Cboe, Nasdaq, and NYSE withdrew their prior applications to the SEC for permission to trade Bitcoin ETF options, which had been filed last year. At the same time, Cboe withdrew its application for a spot Bitcoin ETF, but filed a new application for a different structure.

Why the three exchanges appeared to agree on their actions in the SEC filings is partially evident from the sequence of events. However, Cboe’s decision to refile its application could provide further insight into the rationale behind the exchange’s choice.

In any case, the latest development might lead to a delay in the final date of the SEC decision. In the meantime, Seyffart has shared his thoughts on the latest development, which saw Cboe’s application increasing in length from 15 to 44 pages. He pointed out that it is impossible to verify whether the regulator and CBOE are already in communication regarding this matter.

Still, he expressed his opinion that there is cause for optimism and to suspect that the SEC may have provided some kind of input.

Seyffart’s assertion was based on the observation that Cboe’s application increased in length from 15 to 44 pages. He ended by outlining two potential outcomes. The new application will probably start the approval clock over if the SEC still needs to get involved. On the other hand, a deadline only matters if the regulator is. He stated, in part:

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

As deduced by Seyffart from Cboe’s refiling, Eric Balchunas, a fellow Bloomberg analyst, too, saw the event as positive. Balchunas agrees, saying that if the regulator were going to flatly deny approval, they would not have bothered to communicate. Additionally, the analyst wrote in part:

“Just as ‘comments from the SEC’ was a good sign in our ETF approval odds, we think this is good sign here too.”