crypto asset manager grayscale investment is pushing the U.S. Securities and Exchange Commission (SEC) to approve options trading. Bitcoin (CRYPTO:BTC) An ETF that aims to diversify the investor base.
what happened: Grayscale CEO michael sonnenschein We recently emphasized the importance of giving options about grayscale bitcoin trust (OTC:GBTC) argued that a refusal would have an undue influence on shareholders, Reuters reported.
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The petition comes despite the SEC's history of approving options on ETFs that track Bitcoin futures.
“This is critical to GBTC and all Spot Bitcoin profits.” [exchange-traded product] Investors will have access to exchange-listed options for GBTC and other spot Bitcoin ETPs,” Sonnenschein emphasized.
The call comes against the backdrop of Bitcoin's impressive performance, with the cryptocurrency aiming for a monthly increase of more than 47%, a peak not seen since December 2020.
Bitcoin's soaring value has prompted asset managers to capitalize on the growing interest in cryptocurrencies by proposing a new wave of complex crypto products to the SEC.
Also read: Is Bitcoin Bull Market Stumbling? Recording Grayscale Outflow Signal Potential Shift
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why is it important: Options trading, which allows investors to choose to buy or sell an asset at a fixed price within a specific time period, could revolutionize the Bitcoin ETF market.
However, obtaining regulatory consent for these new ETFs is expected to be a lengthy process. The SEC, which is responsible for approving technical modifications to option listings, typically greenlights such changes shortly after an ETF debuts.
Nevertheless, Bitcoin's classification as a commodity means that the Spot Bitcoin ETF's options may also require the consent of the Commodity Futures Trading Commission (CFTC), allowing approval. The path to getting there becomes even more complicated.
The absence of options trading poses a significant risk management dilemma for major investors, potentially blocking large inflows into these ETFs, estimated by analysts to be up to $100 billion. There is.
Sonnenschein said options not only help with price discovery for new ETF stocks and help investors better navigate the market, hedge, and generate returns, but also bring Bitcoin into the regulated financial ecosystem. They argue that it will also lead to closer integration of the
“The option would bring Bitcoin further within regulatory boundaries by allowing additional regulated market participants, such as contract merchants and broker-dealers, to trade the product,” he said.
Price action: At the time of writing, Bitcoin was trading at $61,950, up 1.1% in the past 24 hours, according to Benzinga Pro.
Read next: Gold, Bitcoin Rise – Is US Debt Soaring Main Factor?
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