SEC Delays Decision on BlackRock’s Bitcoin ETF Options Trading Until April 24
Qadir AK8 Mar 20242 min read
The Securities and Exchange Commission (SEC) has decided to take more time to think over BlackRock’s request to offer options trading on a Bitcoin ETF that tracks the actual price of Bitcoin. This kind of trading would let investors bet on the future price of Bitcoin without owning it directly. The SEC has moved the decision date to April 24. BlackRock’s request isn’t the only one waiting for an answer. The SEC is also taking its time with similar requests from Cboe Exchange, Inc. and Miax Pearl LLC.
A Closer Look at the Decision-making Process
The SEC made this decision public on March 6, stating that it needs extra time to consider the rule change suggested by Nasdaq. Nasdaq ISE had put forward a proposal on January 9, to allow trading options on the iShares Bitcoin Trust. This proposal got published for everyone to see and comment on by January 25, and five comments were received.
According to the rules, the SEC had 45 days from the publication date to decide. They could extend this to 90 days if needed, which they did. The original deadline was March 10, but they’ve moved it to April 24. The SEC stated that this extension ensures they have enough time to review the proposal and make a thoroughly informed decision.
BlackRock’s Bitcoin Strategy Expands
While waiting for the SEC’s decision, BlackRock is not sitting idly. The company has filed new documents with the SEC to buy more Bitcoin ETFs. They plan to include these in their Global Allocation Fund. This filing indicates that BlackRock is looking to invest in Bitcoin ETFs officially listed and traded on recognized national exchanges.
BlackRock is a big player in the Bitcoin ETF market. Their current Spot BTC ETF is performing exceptionally well, leading a surge in interest for Bitcoin ETFs. The past week saw unprecedented performance levels for Bitcoin ETFs, with records broken nearly daily. The price of Bitcoin has been holding steady at around $68,000 since the beginning of the week, signaling strong market performance.
