Options Exchange Cboe Resubmits Application to List Options on Spot Bitcoin Exchange Traded Funds (ETFs) with Details Here’s Why

Options Exchange Cboespot Bitcoin updated and resubmitted its application to list options on exchange-traded funds (ETFs).

Today, Cboe’s sudden resubmission of its application to offer options on spot Bitcoin ETFs has caused consternation in financial circles.

The initial filing, filed in January, was a brief 15-page document proposing a rule change to list options on ETFs holding spot Bitcoin.

But the new filing has expanded to 44 pages and includes specific details about recommended ETFs from firms such as Fidelity, Ark Invest/21Shares and BlackRock, among others.

Bloomberg Intelligence analyst James Seyffart noted earlier in the day that he expects spot Bitcoin ETF options to become available in the fourth quarter of 2024.

Seyffart noted that the deadline for SEC decisions is around September 21, while additional steps need to be taken by the Options Clearing Corporation (OCC) and the Commodity Futures Trading Commission (CFTC).

Shortly after Cboe’s re-application, other exchanges including Miami International Securities Exchange, MIAX PEARL, and BOX Exchange withdrew their applications to list spot Bitcoin ETF options.

Despite this, Seyffart and Bloomberg Intelligence analyst Eric Balchunas downplayed the significance of these pullbacks, stressing that major exchanges such as Nasdaq, NYSE and Cboe still have active filings.

Seyffart speculated that the SEC’s feedback may have influenced Cboe’s decision to refile. Seyffart noted that the expanded filing addresses concerns about position limits and market manipulation.

“The new filing appears to be a response to the SEC’s feedback and indicates engagement rather than an outright denial,” Seyffart said.

*This is not investment advice.