The proposal issued by Nasdaq around option trading on Blackrock's Ethereum spot ETF only lasted 9 days, the American stock exchange having informed the Securities Exchange Commission (SEC) of its retraction. However, it could well be a strategy to bounce back better.
Many Proposals for Options Trading Initially Received by the SEC Have Been Withdrawn
On August 15, just 9 days after submitted a request to the Securities and Exchange Commission (SEC) to allow trading of options on BlackRock's proposed Ethereum spot ETF, Nasdaq finally changed its mind.
The American stock exchange has withdrawn its two proposals in which it advocated for options trading for 2 BlackRock ETFs, the first based on Bitcoin (BTC), and the other on Ethereum (ETH).
👉 To go further – Bitcoin Spot ETFs Explained: Everything You Need to Know
This week, the Nasqad is not alone in withdrawing its proposal for options trading for cryptocurrency-based ETFs.. MIAX, MIAX Pearl, BOX Exchange, or even the New York Stock Exchange (NYSE) Arca have also backtracked, having filed their requests for options trading on spot Bitcoin ETFs several weeks, if not months ago.
With trading options, Exchanges wanted investors to be able to buy or sell ETFs at a fixed price for a set period of time. This prevents its price from fluctuating, giving investors time to think before making their decision.
Binance: the leading crypto exchange platform
The Nasdaq is backtracking… to bounce back better?
So far, The SEC has never yet accepted trading of options products on spot Bitcoin ETFs and spot Ethereum ETFsThe current trend suggests that this approval will not be given for a very long time.
However, despite the withdrawals, James Seyffart, an analyst for Bloomberg Intelligence, believes that several U.S. exchanges including Nasdaq and NYSE Arca are likely to file new listing proposals and trading options for ETFs in the near future.
NASDAQ & NYSE have joined CBOE in withdrawing their applications for allowing options to trade on the Bitcoin ETFs. I'm expecting them to re-file over the coming days or weeks like we saw from CBOE. https://t.co/8trtqNBVTx pic.twitter.com/YC1U2SgAVA
— James Seyffart (@JSeyff) August 15, 2024
To support her words, the analyst returned on the case of the Chicago Board Options Exchange (CBOE) : ” I expect them to [Nasdaq et NYSE Arca, NDLR] re-file their applications in the coming days or weeks, as we have seen from the CBOE side “.
Indeed, just like Nasdaq and NYSE Arca, CBOE Withdrew ETF Options Trading Proposals from SECa few days ago. It is entirely possible that the SEC may have requested certain modifications to these investment vehiclesgiving time to the various exchanges that have submitted applications to review their copy.
💰 Also in the news – Morgan Stanley buys $185 million of spot Bitcoin ETF, joining Goldman Sachs
The exchange specializing in options contracts has filed a new application, which it considers more solid, to be approved by the American financial markets regulator.According to James Seyffart, the first CBOE request consisted of 15 pages, compared to 44 in the new filing, reinforcing the hypothesis of a potential dialogue with the American regulator.
Source : DRY
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Surprised by the rise of crypto-assets in the late 2010s, I started to closely follow this sector that fascinates me to the highest degree. When I am not in football stadiums, rugby or handball halls, I work on writing relevant articles about cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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