Nasdaq, NYSE Cancel Plans for Bitcoin and Ethereum Options
According to separate notices, Nasdaq and NYSE, the leading US stock exchanges, have suspended their bids for listing and trading in bitcoin and ethereum exchange-traded funds (ETFs).
The NYSE has withdrawn its proposal to list and trade in two Bitcoin funds, including the Grayscale Bitcoin ETF and the Bitwise Bitcoin ETF. These ETFs launched on January 10, along with other funds offered by BlackRock, Fidelity and VanEck.
No ETF options are coming yet.
Following the NYSE, Nasdaq lifted its offering for options on BlackRock's iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA). Last week, BlackRock and Nasdaq filed an application with the Securities and Exchange Commission (SEC) to list and trade the Ethereum ETF.
The NYSE also announced options for listing and trading on three Ethereum funds, including Grayscale Ethereum Trust (ETHE), Grayscale Ethereum Mini (ETH), and Bitwise Ethereum ETF (ETHW). These applications are still active at the time of publication.
Recently, several exchanges such as MIAX, MIAX Pearl, BOX Exchange and Cboe have also picked up similar ideas.
However, Cboe resubmitted the application shortly after it was withdrawn. Although there is no official reason, the move has led to speculation that these funds are pending a possible tie-up with the SEC.
Bloomberg Intelligence analyst James Seifert predicts that the Nasdaq and NYSE will soon reorganize for spot Bitcoin ETF options, similar to Cboe's actions. “I expect them to resubmit in the coming days or weeks, as we've seen from the CBOE,” Seifert said.
Growing interest
While the SEC has approved the sale of these products, it has not yet approved any options on Bitcoin or Ethereum ETFs. However, the SEC has published the proposal in the Federal Register as part of its review process, meaning the chances of approval remain.
Regardless of the reason for the delayed decision, these proposals show that demand for crypto investment products is growing. Fund managers want to capitalize on this trend by offering trading options.
Nasdaq and NYSE believe that allowing options on Ether ETPs will enhance market transparency and price discovery. This is expected to attract more liquidity and provide investors with a cost-effective risk management tool.
On Thursday, the SEC approved the first leveraged microstrategy ETF. The fund, which trades under the ticker MSTX, aims to provide 175% long daily target exposure to MicroStrategy Stock (MSTR).
MicroStrategy is a prominent player in the crypto space. The firm, under Bitcoin maxis Michael Saylor, has regularly added more bitcoins to its holdings. As of August, MicroStrategy has approximately 214,400 Bitcoin, worth around $15.22 billion.
The company's stock has seen a dramatic increase, shares have increased more than 70% in the last six months, while the price of Bitcoin has increased by 13% in the same period. By considering the microstrategy's strategy of holding Bitcoin as a primary treasury asset, the product allows investors to indirectly increase their exposure to Bitcoin.
Sylvia Jablonski, CEO of Defiance ETFs, the issuer of MSTX, said:
“Given MicroStrategy's high beta compared to Bitcoin, MSTX offers investors a unique opportunity to maximize their exposure to the Bitcoin market within an ETF wrapper.”
The launch of MSTX comes at a time of increasing interest in Mentara-related investment products. MicroStrategy's stock outperformed most of its peers in the S&P 500 thanks to its strong Bitcoin acquisition strategy, making the ETF an attractive option for those looking to take advantage of the volatility of the cryptocurrency market.
Inflows into ETFs contribute significantly to Bitcoin price growth. Historically, Bitcoin ETFs have accounted for a large proportion of new investments in Bitcoin.
However, ETFs are designed for sophisticated investors with high-risk, high-reward investment strategies due to the highly volatile nature of ETFs.
