Grayscale CEO Michael Sonnenshein urged regulators to approve spot Bitcoin exchange-traded fund (ETF) options in a statement on February 5.
Sonnenshein wrote in a post on X:
“…I think it has never been more important…to advocate for the development of a robust publicly traded options market for spot Bitcoin ETFs. Although GBTC has been on the public market since 2015, it has never been accompanied by listed options, as these are not a feature of the OTC market.”
Elsewhere he said similar products should be treated equally, writing:
“In the same way that bitcoin futures ETFs and spot bitcoin ETFs should (and are now) treated the same, so should listed options on these products.”
He noted that the New York Stock Exchange (NYSE) and other national securities exchanges recently filed documents that would allow options trading on commodity-based ETFs such as Grayscale’s own GBTC fund.
The SEC must now consider these applications. Sonnenshein noted that while Bitcoin futures ETF options were quickly introduced through an automatic approval process, spot Bitcoin ETF options must go through a longer approval process, similar to the process for any underlying fund.
Sonnenshein called options “good for investors.” He said options support price formation, allow better navigation of market conditions and generate revenue. He noted that this applies to both private investors and institutional investors.
SEC may decide on options before the end of the year
The US Securities and Exchange Commission is currently processing several spot Bitcoin ETF applications. The agency opened commentary on Jan. 19 on the Nasdaq-listed BlackRock fund and several Cboe BZX-listed funds.
Bloomberg ETF analyst James Seyffart has done just that suggested that a decision could come between February and September 2024. Separate reports from Reuters suggest a decision could not come until December 2024; that later date is partly due to the possibility that both the SEC and the Commodity Futures Trading Commission (CFTC) will have to grant approval.
The SEC, by the way, approved several underlying spot Bitcoin ETFs on January 10. Grayscale was one of many companies to receive approval at that time.
Grayscale’s GBTC ETF, converted from an existing fund, had $20.5 billion in assets under management (AUM) as of February 2. This currently makes it the largest Bitcoin ETF on the market, although it is also experiencing significant outflows.
