- Cboe withdrew application for options on spot BTC ETFs.
- The exchange filed a new and updated application at the same time.
- Three “tiny” exchanges also withdrew applications for options on spot BTC ETFs.
Cboe, the world’s largest options exchange, has withdrawn application for options on spot Bitcoin exchange-traded funds (ETFs), causing a stir in the crypto asset space as Bloomberg analyst James Seyffart shared his two cents on the exchange’s decision.
In a post on social media platform X (formerly Twitter), Seyffart said that while Cboe did withdraw the application, the exchange filed a “brand new and updated application.” Moreover, three “tiny” exchanges have withdrawn applications for options on spot BTC ETFs. However, as per Seyffart, the “exchange filings that matter IMO are the ones that list the ETFs — Nasdaq, NYSE, CBOE.”
Seyffart previously predicted that the approval of options on spot Bitcoin ETFs could happen in the fourth quarter of this year, with a September 21 deadline for the Securities and Exchange Commission (SEC) to make a decision. Following SEC approval, the Options Clearing Corporation (OCC) and Commodity Futures Trading Commission (CFTC) would also need to review the filings.
While the original application from Cboe was only 15 pages long, the new and updated application is a substantial 44 pages, which could mean that the SEC gave some sort of feedback on the original application, speculated Seyffart. The Bloomberg analyst believes that the feedback “related to position limits and market manipulation concerns.” Interestingly, after the new filing, the deadline has changed, said Seyffart, while adding:
“No way to know for certain if SEC is engaging with CBOE on this. One downside here is that I think this restarts the clock. So deadline would move to some time at the end of April.”
Seyffart concluded that if the SEC is involved in the process of the approval of options on spot Bitcoin ETFs, then the deadline might not even matter.
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