NYSE American LLC has withdrawn its proposal to list and trade options of Bitwise and Grayscale Bitcoin ETFs.
- NYSE American has withdrawn its proposal for Bitcoin ETF options. Increased regulatory concerns and SEC delays cause uncertainty.
In a sudden turn of events, the NYSE has abandoned its plan to list Bitcoin [BTC] ETF options. The withdrawal has added uncertainty to the continued approval of various financial products.
Multiple stakeholders, traders, and analysts have reported the development. For instance, James Seyffart reported the development through X (formerly Twitter) page, reporting that,
“NASDAQ & NYSE have joined CBOE in withdrawing their applications to allow 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.”
According to an official report, NYSE withdrew its plans to list and trade options for two spot Bitcoins ETFs. The filing with the SEC planned to list ETF options for Grayscale Bitcoin and Bitwise BTC ETFs.
The withdrawal follows a long list of recent such decisions by various firms. A week ago, various exchanges withdrew such proposals, such as the MIAX Pearl and BOX exchanges.
Equally, CBOE withdrew the application last week but returned again to make a similar filing. Although the withdrawal causes uncertainty, CBOE re-filing gives hope for SEC approval in the future.
Regulatory issues around BTC ETFs
The major cause of the withdrawal is the growing regulatory uncertainty in the U.S. amid delays from the SEC.
Over the past, since the approval of the first ETFs in January, the SEC has delayed and postponed clearance for various ETFS.
Thus, these exchanges have pursued the agency by submitting plans only to withdraw them later, indicating existing regulatory issues.
SEC has failed to provide clear Bitcoin ETF choices because of its protracted review procedures and delays.
Impact on crypto market
Source: Farside Investors
Undoubtedly, the withdrawal of NYSE’s plans and similar decisions by other exchanges would considerably impact the crypto market.
Notably, approving BTC ETF options offers investors opportunities to hedge and wager on prices. Thus, decreased options disadvantage investors and the whole crypto market.
Source: Coinglass
At press time, BTC ETFs were enjoying a positive inflow, according to data from Coinglass. In the past 24 hours, the assets have recorded a net flow of $11.1 million, with a total inflow of $53.74 billion.
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The data showed increased demand for ETFs with increased investor interest. Thus, the recent development by the NYSE to withdraw their proposal is a drawback to the market.
There was thus positive market sentiment towards Bitcoin ETFs, providing investors with more options is a win for the market.
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