As a researcher with a background in finance and experience in following the regulatory landscape of cryptocurrencies, I strongly believe that approving options trading on Bitcoin ETPs is an essential step forward for the crypto market and its investors.
As a researcher studying the financial markets, I’ve come across reports suggesting that US lawmakers are urging the Securities and Exchange Commission (SEC) to consider approving options trading on Bitcoin exchange-traded products (ETPs). This means allowing investors to bet on the price movements of Bitcoin through these financial instruments. However, it is important to note that the SEC has yet to give its approval for such trading, as it involves unique regulatory challenges due to Bitcoin’s decentralized nature.
Based on a report by Axios, Reps. Mike Flood and Wiley Nickel have penned a missive to SEC Chairman Gary Gensler, imploring him to cease favoritism towards traditional investment funds over their crypto counterparts.
As a crypto investor, I strongly encourage you to take swift action and grant approval for Bitcoin Spot Exchange-Traded Products (ETPs) with option trading capabilities. Alternatively, if you choose not to do so, please clarify the reasoning behind your decision to treat options for Bitcoin futures ETFs differently than those for spot Bitcoin ETPs. The current disparity in treatment between these two types of investment vehicles warrants explanation.
As a researcher studying financial markets, I would describe options as follows: Options represent contracts that grant me the privilege, not the requirement, to transact in Bitcoin at a predetermined price before a specific expiration date. These financial instruments serve various purposes for investors, such as safeguarding against price fluctuations, mitigating potential losses, and even producing extra revenue through intricate strategies.
According to Flood and Nickel, obtaining the approval from the SEC is essential for the protection of investors that the securities regulatory body aims to serve.
The agency has been delaying judgements on January applications from the New York Stock Exchange, Nasdaq, and Cboe Global Markets.
Nasdaq has applied for permission to facilitate trading of options on BlackRock’s iShares Bitcoin Trust, while Cboe plans to provide this service for different Bitcoin funds. Furthermore, the NYSE aims to offer options trading on the Bitwise Bitcoin ETF (BITB), Grayscale Bitcoin Trusts (GBTC), and any other trusts that hold Bitcoin.
The Commission has recently started a new consultation process regarding the proposed modification to allow trading options on Bitcoin investment funds.
As a crypto investor, I’ve come across an interesting development in the regulatory sphere. The Securities and Exchange Commission (SEC) has announced that they intend to investigate the potential effects of Bitcoin options on market stability. This exploration comes amid concerns about volatile conditions in the market. Additionally, the SEC is looking into whether existing market surveillance and enforcement practices are robust enough to handle the complexities of Bitcoin options. For those with an opinion on this matter, there’s an opportunity to share your thoughts. Initial comments can be submitted by May 15, 2024, while rebuttal comments can be made until May 29, 2024.
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2024-05-02 21:21