SEC acknowledges Nasdaq’s spot Bitcoin ETF options request

Options trading for spot Bitcoin ETFs may be up after a Securities and Exchange Commission nod allowed multiple “non-security commodity” funds to list on U.S. exchanges.

Nasdaq submitted 19b-4 filings with the SEC to amend listing rules allowing trading derivatives on ETFs underpinned by Bitcoin (BTC).

Following the proposed rule changes, the SEC has acknowledged the requests, opening a 21-day window for public comments and feedback. ETF expert James Seyffart opined that the SEC could field a decision on these filings by the end of February; however the verdict may also be delayed until September.

The SEC does not usually respond as quickly to these sorts of requests, Seyffart noted on X. 

Options on spot BTC ETFs could unlock another channel for investors to access Bitcoin exposure. These derivatives allow traders to speculate or hedge against volatility, a market phenomenon closely associated with cryptocurrencies and other risk assets.

If approved, options would join the swathe of Bitcoin-related products that have entered markets shortly after spot BTC ETFs were approved. Financial products provider Direxion already filed for five leveraged spot Bitcoin ETFs. 

Increased interest in crypto ETFs has also spread beyond U.S. soil, with Hong Kong regulators and institutions gearing up to launch similar products in Q1 this year. Watchdogs in Singapore and South Korea have cautioned against spot BTC funds, although officials may push for a different view.

South Korea’s presidential office implored local regulatory agencies to reassess their crypto stance amid growing demand for BTC-related investment vehicles.