- NYSE files 19b-4 form with SEC for options on Commodity-Based Trust Shares.
- Approval could open regulated avenues for Bitcoin options trading via NYSE.
- Analysts anticipate potential growth in Bitcoin derivatives market.
The New York Stock Exchange (NYSE) has taken a significant stride in the cryptocurrency market by filing a 19b-4 form with the United States Securities and Exchange Commission (SEC). This move is aimed at gaining approval for the listing and trading of options on ‘Commodity-Based Trust Shares,’ the format adopted by issuers of the recently approved spot Bitcoin ETFs.
According to Henry Jim, a member of the Bloomberg ETF Intelligence team, the NYSE’s filing holds great importance for spot Bitcoin ETFs and the broader crypto market. If approved by the SEC, it would pave the way for a regulated framework for trading options on the NYSE. This development could potentially open up fresh investment opportunities for traders, spanning both retail and institutional sectors, focusing on Bitcoin.
Eric Balchunas, a senior ETF analyst at Bloomberg, shares optimism about the potential success of options trading for spot Bitcoin ETFs, citing the inherent volatility of Bitcoin. Options trading not only allows traders to hedge their positions but also provides avenues for speculation on price movements and calculated exposure to Bitcoin.
The SEC’s recent approval of spot Bitcoin ETFs in January marked a pivotal moment for the industry, facilitating regulated trading on global exchanges. Following this regulatory milestone, major Wall Street players such as BlackRock and Fidelity have introduced Bitcoin products to cater to a diverse range of investors, including institutional players who were previously unable to access such exposure. Reports indicate that spot Bitcoin ETFs have collectively attracted over $10 billion in just three days.
With the NYSE’s filing, the pathway for options trading on these ETFs appears clear, adding to their attractiveness for a broader investor base. Eric Balchunas suggests that the earliest approval for this 19b-4 filing could be expected in approximately two months.
The SEC’s response to this application remains uncertain, but if the filing gains approval, it could further stimulate the growth of the Bitcoin derivatives market, potentially resulting in higher trading volumes.
Meanwhile, Bitcoin prices are currently in a consolidation phase, as observed in the daily chart’s candlestick arrangement. Presently capped around $43,500, with support at $41,800, the cryptocurrency market is awaiting a breakout. Traders are optimistic, but a failure to breach the immediate resistance level could trigger a sell-off, pushing Bitcoin prices back to $40,000 or even lower.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.