The Chicago Board Options Exchange (CBOE) has taken a significant step in its pursuit of launching options on spot Bitcoin ETFs by withdrawing its initial application and resubmitting a more detailed and comprehensive version. This move, which includes a substantially expanded 44-page filing compared to the original 15-page document, signals potential progress toward regulatory approval.
James Seyffart, a Bloomberg ETF analyst, commented on the developments via X, noting “definite movement on Bitcoin ETF options.” The enhanced application features more in-depth information, particularly on position limits and market manipulation concerns, which suggests that the Securities and Exchange Commission (SEC) may have provided feedback, prompting CBOE to refine its proposal.
Although it remains unclear whether the SEC is actively engaging with CBOE regarding the resubmission, Seyffart speculated that the strategy might be designed to “restart the clock,” potentially delaying the decision deadline until late April 2025. Despite this uncertainty, Bloomberg analysts maintain optimism that Bitcoin ETF options could be approved as early as the fourth quarter of this year.
The SEC’s final decision on the matter is expected around September 21, but additional approvals will be necessary from the Office of the Comptroller of the Currency (OCC) and the Commodity Futures Trading Commission (CFTC) before options trading can commence. Earlier this year, the NYSE American, CBOE, and Nasdaq all filed applications to introduce options trading on spot Bitcoin ETFs. However, the SEC postponed its decision on CBOE’s application in March and similarly delayed the NYSE American’s application in April.
The recent resubmission by CBOE underscores ongoing negotiations and refinements as the financial industry anticipates regulatory green light. On August 9, Nate Geraci, president of ETF Store, highlighted that options are already available on certain cryptocurrency derivatives exchange-traded products (ETPs), reinforcing the case for their availability on spot ETFs.
If approved, options based on spot Bitcoin ETFs could pave the way for new investment strategies, such as “covered call writing.” This strategy allows investors to generate income by selling a call option, giving someone else the right to purchase the underlying asset at a predetermined strike price while retaining ownership via the spot ETF.
In a related development, the New York Stock Exchange (NYSE) American has recently applied with the SEC to list options for 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 introduction of options trading on these Ether ETFs is expected to offer investors a more cost-effective way to gain additional exposure to Ether. The SEC is anticipated to receive public comments on this proposal within the next 21 days.
If approved, the rule change would specifically apply to the Grayscale and Bitwise Ether ETFs, currently the only spot Ether funds listed on the NYSE American exchange. This further demonstrates the growing interest and momentum in the cryptocurrency space as financial institutions continue to push for expanded investment products in the sector.
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