Cboe’s Bitcoin ETF Options Application Update

Cboe has re-filed its application to list options on spot Bitcoin exchange-traded funds (ETFs) after withdrawing it late Thursday, indicating possible engagement with the SEC.

Earlier on Thursday, Bloomberg Intelligence analyst James Seyffart anticipated that options on spot Bitcoin ETFs could be available by Q4. He noted that the SEC’s final deadline for decision is around September 21, though additional steps from OCC and CFTC would follow.

In a contrasting move, the Miami International Securities Exchange, MIAX PEARL, and BOX Exchange withdrew their applications for listing spot Bitcoin ETF options, according to SEC filings.

Seyffart commented, “Not gonna read much into it for now. The exchange filings that matter IMO are the ones that list the ETFs — Nasdaq, NYSE, and CBOE.” Bloomberg Intelligence colleague Eric Balchunas added that the exchanges withdrawing their applications are relatively small, and the major exchanges still have pending applications with good chances for later approval.

Despite initially seeming negative, Seyffart noted, Cboe’s withdrawal followed by a new, updated application indicates some progress regarding options for spot Bitcoin ETFs. The new application includes a proposed rule change allowing Cboe to list and trade options on units representing interests in leading ETFs such as Fidelity, Ark Invest/21Shares, and BlackRock, marking a significant elaboration from the original 15-page filing to a detailed 44-page document.

Seyffart suggested the SEC may have provided feedback related to position limits and market manipulation concerns, indicating engagement rather than outright denial.

Timing and Implications

Despite positive signals, there are concerns about delays, as restarting the application process could push the SEC’s decision deadline to late April. Balchunas emphasized that guidance engaged by the SEC is favorable, as it indicates the agency is considering the application rather than rejecting it outright.

As regulations regarding options on spot Bitcoin ETFs are discussed, Nate Geraci from The ETF Store pointed out existing ETFs approved for options trading in the crypto derivatives space, highlighting the contrast in regulatory decisions.

On Wednesday, NYSE American also proposed a rule change for listing options on spot Ethereum ETFs from Bitwise and Grayscale.