Cboe Reapplies to List Options on Bitcoin ETFs in Spot Exchange Heres Why

Options Exchange Cboe has submitted a revised application to list options on spot Bitcoin exchange-traded funds (ETFs), causing concern in the financial industry. The original filing, submitted in January, was a brief 15-page document proposing a rule change to list options on ETFs holding spot Bitcoin. However, the new filing has been expanded to 44 pages and includes specific details about recommended ETFs from firms like Fidelity, Ark Invest/21Shares, and BlackRock. Bloomberg Intelligence analyst James Seyffart predicts that spot Bitcoin ETF options will be available in the fourth quarter of 2024. He also noted that the deadline for SEC decisions is around September 21, and further steps must be taken by the Options Clearing Corporation and Commodity Futures Trading Commission. Following Cboe’s re-application, other exchanges, including Miami International Securities Exchange, MIAX PEARL, and BOX Exchange, withdrew their applications. However, Seyffart and Bloomberg Intelligence analyst Eric Balchunas downplayed the significance of these withdrawals, emphasizing that major exchanges like Nasdaq, NYSE, and Cboe still have active filings. Seyffart speculates that the SEC’s feedback may have influenced Cboe’s decision to refile, and he believes that the expanded filing addresses concerns about position limits and market manipulation.