NYSE American LLC has pulled its proposal to list Bitcoin ETF options, adding to the growing uncertainty surrounding the approval of these financial products in the US. The move reflects the broader challenges posed by regulatory delays from the SEC.

Bitcoin ETF Options Face Setbacks as NYSE Withdraws Proposal in US

In a formal announcement, NYSE American LLC withdrew its request to list and trade options on two spot Bitcoin ETFs.

The original filing was with the US Securities and Exchange Commission (SEC), which sought to list the Bitwise Bitcoin ETF and the Grayscale Bitcoin ETF.

The listing and trading of options on two spot Bitcoin ETFs was rescinded by NYSE American LLC. With this plan, Bitwise and Grayscale BTC ETFs hoped to get the green light from the SEC to start offering options trading.

Official notice of the proposal's withdrawal was given to the public on August 15, 2024, following its formalization on August 9, 2024, through an SEC filing.

US Exchanges Withdraw Bitcoin ETF Options Amid Regulatory Delays

Not only that, but NYSE American isn't the only one going out of business. Cboe isn't the only exchange that has lately dropped its listing applications for spot Bitcoin ETFs; MIAX Pearl and BOX Exchange are among them.

Regardless, Cboe reapplied after withdrawing it, leading some to speculate that the company is still in talks with the SEC.

The growing ambiguity surrounding Bitcoin exchange-traded funds (ETFs) in the US market is consistent with NYSE American LLC's decision to withdraw from the proposal.

Coingape reports that the SEC has postponed the clearance of options trading for numerous spot Bitcoin exchange-traded funds (ETFs) that were approved earlier this year by companies like Fidelity, Grayscale, and BlackRock.

As a result, exchanges have continued to submit plans, only to subsequently remove them, suggesting potential regulatory concerns. In addition, the Bitcoin ETF choices are unclear due to the SEC's protracted review procedures and decision-making delays.

The Bitcoin market might be affected if additional exchanges follow the lead of the NYSE American and withdraw their proposals. Investors would have had greater opportunities to hedge and wager on the price of Bitcoin if Bitcoin ETF options had been allowed. Since market players have few options for risk mitigation, this could be considered a drawback.

As things stand, professionals in the field are still holding out hope that the Bitcoin ETF choices will be approved this year. According to ETF expert James Seyffart, the first Bitcoin exchange-traded fund (ETF) products would hit shelves in the fourth quarter of 2024, presuming regulators give the go-ahead.

Potential Approval of Bitcoin ETF Options in US by Late 2024

On the other hand, additional regulatory bodies, like the Commodity Futures Trading Commission (CFTC), would still have to approve everything.

Options on Ethereum ETFs are also being considered for launch, in addition to Bitcoin. Like the previously dropped Bitcoin plan, NYSE American has proposed options trading on Ethereum ETFs.