CBOE Resubmits Application for Bitcoin ETF Options as Approval Looms

The Chicago Board Options Exchange (CBOE) has resubmitted a more comprehensive application for options on spot Bitcoin ETFs after withdrawing its original, less detailed version. Bloomberg ETF analyst James Seyffart noted on X that there is “definitely some movement on Bitcoin ETF options,” with the new filing expanding from 15 pages to 44 pages and addressing position limits and market manipulation concerns.

Optimism for Q4 Approval

While it’s unclear if the SEC is directly engaging with CBOE on this matter, the resubmission may be a strategic move to “restart the clock,” potentially extending the decision deadline to late April 2025. Despite this, Bloomberg analysts remain optimistic that Bitcoin ETF options could receive approval by the fourth quarter of this year. The SEC’s final decision deadline is around September 21, but additional approvals will be required from the Office of the Comptroller of the Currency (OCC) and the Commodity Futures Trading Commission (CFTC) before options trading can commence.

Background and Industry Movements

In January, the NYSE American, CBOE, and Nasdaq filed applications to introduce options trading on spot Bitcoin ETFs. The SEC delayed its decision on CBOE’s application in March and similarly deferred its decision on NYSE American’s application in April. The recent CBOE resubmission indicates ongoing negotiations and adjustments as the industry awaits regulatory approval.

Nate Geraci, president of ETF Store, noted that options are already available on some cryptocurrency derivatives exchange-traded products (ETPs), supporting the case for their availability on spot ETFs. Options provide traders the right, but not the obligation, to buy or sell the contract at a predetermined price by a specified date. If approved, options based on spot Bitcoin ETFs could enable new investment strategies, such as “covered call writing,” allowing investors to generate regular income from the option premium while limiting risks.

NYSE’s Application for Ether ETF Options

Recently, the NYSE American proposed a rule change to list and trade options for three Ether ETFs managed by Grayscale and Bitwise. This proposal includes options for the Bitwise Ethereum ETF (ETHW), the Grayscale Ethereum Trust (ETHE), and the Grayscale Ethereum Mini (ETH). The SEC is expected to receive comments on this proposal within the next 21 days. If approved, the rule change would apply specifically to the Grayscale and Bitwise Ether ETFs, the only spot Ether funds currently listed on the NYSE American exchange.

Conclusion

The resubmission of CBOE’s application for Bitcoin ETF options reflects ongoing efforts to address regulatory concerns and secure approval. If successful, it could pave the way for new investment strategies and broaden the scope of cryptocurrency trading options available to investors.