Cboe Exchange files an amended application to list options on Bitcoin and Ethereum ETFs
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US-headquartered Cboe Exchange recently filed an amended application with the local regulators, seeking permission to list Bitcoin and Ethereum ETFs options.
The exchange’s application proposed listing options connected to ETFs from other asset managers, including BlackRock’s iShares, VanEck, Invesco, 21Shares, Bitwise, Grayscale, Valkyrie, and Fidelity. The rule change would classify the two cryptos’ spot ETFs alongside commodities-based ETFs.
Some examples include the iShare Silver Trust and Goldman Sachs Physical Gold ETF. If approved, BTC and ETH spot ETFs would join the previously mentioned commodities ETFs as securities deemed appropriate for options trading.
Major exchanges have been renewing their crypto ETF applications
The move was made only days after the recent Nasdaq announcement published on August 27, which said that the platform would list Bitcoin options tied to the CME CF Bitcoin Real-Time Index (BRTI). The Index benchmarks BTC’s spot price, making it available to investors who prefer more traditional trading platforms and asset types.
This was not an isolated case, however, as there have been several major traditional exchanges that have submitted their applications for Bitcoin options. However, some of them also decided to pull them after a while. Some examples include the New York Stock Exchange (NYSE), as well as the American and Nasdaq International Securities Exchange (ISE).
Cboe withdrew its own earlier application for BTC ETF options only a few weeks ago, on August 8. However, it refiled its application with a wider scope now, which allowed it to add the Ethereum ETF as well.
After Bitcoin and Ethereum spot ETFs, market participants want Solana ETFs
Commenting on the situation, an analyst for Bloomberg Intelligence, James Seyffart, speculated that the US Securities and Exchange Commission (SEC) likely provided feedback to the exchanges, which resulted in some of them withdrawing their applications, while others renewed them. Bloomberg itself expects spot Bitcoin options to go live in Q4 2024.
Options contracts are often a preferred investment vehicle for investors, as they provide them the right to buy or sell their underlying asset at a specific price. As such, they get to function as both a hedge or a speculative instrument, depending on the situation and investors’ goals.
It is also worth noting that there was a massive recorded growth in interest when it comes to crypto derivatives on regulated exchanges in the US: On August 9, open options interest on Bitcoin futures ETFs skyrocketed, going beyond the $3.25 billion mark.
With Bitcoin and Ethereum ETFs now on the market, many expect to see Solana (SOL) ETFs emerge next. VanEck’s plans for SOL ETFs are still on the table, despite the fact that Cboe Global Markets withdrew its own regulatory filing that proposed the listing of the fund on its platform.
As for the SEC, its stance on Solana was not unexpected. The regulator has previously marked Solana as a security in a variety of different court filings. This caused issuers to consider different approaches, such as amendments to existing filings or the creation of completely new filings that would argue more effectively against Solana’s classification as a security.
