Reps. Nickel and Flood Urge SEC to Approve Options for Spot Bitcoin ETFs

US Representatives Mike Flood and Wiley Nickel are urging the U.S. Securities and Exchange Commission (SEC) to approve options trading on spot bitcoin exchange-traded products (ETPs). They have written a letter to SEC Chair Gary Gensler, requesting an explanation for the delay in approving options for spot Bitcoin ETPs, despite options for Bitcoin futures ETFs already being available. Flood and Nickel highlight the success of spot bitcoin ETFs since their introduction and the need for options trading to provide investors with risk management tools and additional investment strategies. They raise concerns about the SEC’s inconsistent treatment of similar products and emphasize the SEC’s role in addressing regulatory challenges surrounding options trading on spot bitcoin ETFs. The SEC’s decision-making timeline regarding options trading for Bitcoin ETFs proposed by Grayscale and Bitwise has been extended, and the SEC is currently reviewing the impact of introducing Bitcoin options trading on market stability and efficiency. The SEC has set May 29, 2024, as the new deadline for a decision.