NYSE American axes bid for spot Bitcoin ETF options

NYSE American LLC withdrew its regulatory rule change proposal, which sought permission to list spot Bitcoin ETF options. 

According to a filing with the U.S. Securities and Exchange Commission, the national exchange applied for options of the Bitwise Bitcoin (BTC) exchange-traded fund and Grayscale’s converted BTC ETF.

NYSE American also proposed options on spot Ethereum (ETH) ETFs offered by the two issuers, as did BlackRock for its fund.

After filing for rule changes to list and trade spot BTC ETF options on July 19, NYSE American withdrew its application on Aug. 9. The terminated proposal was formalized on Aug. 14 and disclosed on Aug. 15, per the Commission’s website.

Cboe axed its spot Bitcoin ETF options bid as well last week but promptly re-submitted its application. Cboe’s action may indicate ongoing dialogue and feedback from the SEC.

Bitcoin ETF options likely in Q4

Meanwhile, less than two weeks ago, other platforms like BOX Exchange and MIAX Pearl withdrew options proposals for rule changes related to spot Bitcoin ETFs.

On several occasions, the SEC has delayed a decision on filings from Cboe, Nasdaq, and other exchanges, much to the frustration of investors and issuers alike. 

Pro-crypto ETF voices, such as former Grayscale CEO Michael Sonnenshein, have urged the Commission to approve options. Sonnenshein argued that the feature would grant investors a bevy of portfolio options.

ETF expert James Seyffart surmised that spot BTC ETF options would go live during this year’s fourth quarter. If the SEC grants approval, issuers would still need a green light from regulators like the Commodity Futures Trading Commission and the Office of the Comptroller of the Currency, Seyffart said on Aug. 8 via X.