Miami International Exchange MIAX just withdrew its options trading application Spot Bitcoin ETF. This is the first proposal since the US Securities and Exchange Commission (SEC) approved a spot Bitcoin ETF in January this year. The withdrawal was announced through a document filed with the SEC on August 1.
MIAX Withdraws Option Trading Application for Spot Bitcoin ETF
MIAX’s decision to withdraw the application for a spot Bitcoin ETF comes amidst regulatory uncertainty within the market. This move follows concerns raised by Better Markets regarding potential risks associated with such products. While MIAX has stepped back, other exchanges continue to pursue similar licenses, reflecting the growing interest in cryptocurrency derivatives.
Bloomberg Intelligence analyst James Seyffart remains optimistic about the approval of Bitcoin ETF options and anticipates a decision by the end of the following month. Following the SEC’s final decision on September 21, further actions by the Option Clearing Corporation (OCC) and the Commodity Futures Trading Commission (CFTC) are expected.
we think #bitcoin ETF options will be launched in the fourth quarter of this year. The final deadline for the SEC’s decision is around September. 21 But the OCC and CFTC will need to take more steps thereafter.
Below are some ETFs related to BTC and ETH, including leveraged ETFs with options. copy @ericbalciunas pic.twitter.com/USauv6QaFs
— James Seyff (@JSeyff) August 8, 2024
Industry Response to Spot Bitcoin ETF Approval
The industry has generally welcomed the approval of a spot Bitcoin ETF as a natural progression, similar to the establishment of the spot gold ETF. Former Grayscale CEO Michael Sonnenshein also supports this development, emphasizing its alignment with traditional regulatory frameworks. While MIAX has withdrawn its proposal, other market centers like NYSE Arca have put forth their own plans for similar products.
Reactions to MIAX’s decision vary, with some viewing it as a precautionary step in response to regulatory uncertainties. Nevertheless, key figures in the sector remain in favor of expanding cryptocurrency offerings within existing financial instruments, indicating a continued interest in integrating digital assets into the market.
Also Read: Wells Fargo May Soon Offer Bitcoin ETF to Select Clients
