The Miami International Stock Exchange (MIAX) just withdrew its application for options trading. Spot Bitcoin ETF. This comes after the first proposal came out in January this year after the U.S. Securities and Exchange Commission (SEC) approved a spot Bitcoin ETF. The withdrawal was announced in an SEC filing on August 1.
MIAX withdraws proposal amid regulatory uncertainty
MIAX’s decision The withdrawal comes after Better Markets raised concerns and commented on the risks of the product. Better Markets, a non-profit organization not affiliated with any political party, outlined the potential risks to investors and the financial sector. However, this does not mean that other exchanges are not still seeking similar licenses, as interest in cryptocurrency derivatives is growing.
Bloomberg Intelligence analyst James Seifert is hoping for an earlier approval of the options. He said approval could happen by the end of the month after the next options. As for further action after the final SEC decision, which is expected on September 21, Seifert said there will be some action with the Options Clearing Corporation (OCC) and the Commodity Futures Trading Commission (CFTC).
We think #bitcoin ETF options occur in Q4 of this year. The final deadline for SEC decision is ~September 21st, but after that, more steps are needed from the OCC and CFTC.
Here are some BTC and ETH related ETFs that already include leverage with options: cc @Eric Balchunas Korean: https://t.co/xErD5oPiWb pic.twitter.com/USauv6QaFs
— James Seyfert (@JSeyff) August 8, 2024
The industry welcomed the approval of options on a spot Bitcoin ETF as a natural evolution of events similar to those seen with spot gold ETFs. Michael Sonnenshein, former Grayscale The CEO also agrees with this view, saying it is within the acceptable existing regulatory framework. While MIAX is retreating, other market centers such as NYSE Arca are pushing forward with the proposal.
The public reacted to MIAX’s decision with mixed reactions, with some viewing it as a precautionary measure due to the rather unstable regulatory environment. On the contrary, the general sentiment among leading representatives of the sector remains in favor of adding cryptocurrencies to existing financial products.
Also Read: Wells Fargo May Soon Offer Bitcoin ETF to Certain Customers