- NYSE American LLC received SEC approval to list options on Bitcoin ETFs, enhancing cryptocurrency market integration.
- Approved proposal, Amendment No. 3, allows options trading on Bitcoin funds like Fidelity Wise Origin and others.
NYSE American LLC proposed amendments that would allow the trading of options on several Bitcoin-centric funds, such as the Fidelity Wise Origin Bitcoin Fund, ARK21Shares, Invesco Galaxy, and Grayscale Bitcoin Trusts . The proposal, encapsulated in Amendment No. 3, supersedes all prior amendments and the initial proposal, illustrating an evolving regulatory framework that accommodates the complexities of cryptocurrency investments.
“…The Exchange proposes to amend Rule 915 (Criteria for Underlying Securities). Specifically, the Exchange proposes to amend Rule 915, Commentary .10 to allow the Exchange to list and trade options on the following exchange-traded products: the Grayscale Bitcoin Trust (BTC) (the “Grayscale Fund” or “GBTC”), the Grayscale Bitcoin Mini Trust BTC (the“Grayscale Mini Fund” or “BTC”), and the Bitwise Bitcoin ETF (the “Bitwise Fund” or “BITB” and, collectively, the “Bitcoin Funds” or “Funds”)…”
The SEC’s publication of this proposal in the Federal Register invited public commentary, after which the commission moved to ratify the rule change promptly. This amendment primarily modifies Rule 915, which governs the criteria for underlying securities, thus paving the way for enhanced trading of Bitcoin Fund options.
These funds, which now include derivatives trading , aim to enhance market transparency and provide investors with sophisticated tools for hedging against market volatility. The introduction of such options is poised to inject additional liquidity into the market, thereby aiding in more efficient price discovery and offering robust risk management solutions to a broader investor base.
“…The Exchange believes each Bitcoin Fund satisfies the Exchange’s initial listing standards set forth in Commentary .01 to Rule 915.The Exchange notes that the Bitcoin Funds also satisfy the listing standard applied to ETFs traded on the Exchange that they be available for creation and redemption each business day as set forth in Commentary….”
Further, the SEC’s document elaborates on the specific funds involved and the expected impact on the market. By integrating options trading for these funds, the market could see improved liquidity and more stabilized pricing mechanisms for the underlying digital assets.
To support this new venture, NYSE American LLC plans to bolster its regulatory and surveillance capacities. The exchange is set to enforce stringent measures to oversee trading activities linked to these new Bitcoin options . This includes ensuring adherence to market rules and the proactive detection of any potentially manipulative trading behaviors.
