SEC Postpones BlackRock Spot Bitcoin ETF Options Decision

The U.S. Securities and Exchange Commission (SEC) has announced the extension of its review period for the proposed rule change by Nasdaq ISE, LLC to list and trade options on the iShares Bitcoin Trust. 

Initially filed on Jan. 9, the proposal aimed to introduce options trading for the iShares Bitcoin Trust, a move that has attracted attention and commentary within the financial and cryptocurrency communities.

Extended review period

The SEC's decision to delay its ruling comes after the initial 45-day review period following the proposal's publication.

This extension allows the SEC until Apr. 24, to either approve, disapprove, or proceed with further examination of the proposed rule change. 

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This move indicates the SEC's need for additional time to thoroughly consider the implications and public feedback, of which it has received five comments. 

Grayscale's legal challenge

In a related narrative, Grayscale Investments has signaled potential legal action against the SEC following the denial of options trading for its Grayscale Bitcoin Trust (GBTC). 

Grayscale has been vocal in seeking parity with other financial products, emphasizing that the SEC's rejection constitutes unfair treatment to its investors and limits the product's attractiveness. 

The firm argues that the SEC's earlier approval of options trading for bitcoin futures ETFs sets a precedent that should be extended to GBTC, advocating for the benefits of options trading in enhancing price discovery, market navigation, and investment hedging.