Key Points
- NYSE American has withdrawn its plans to list Bitcoin ETF options due to increased regulatory concerns and SEC delays.
- The withdrawal has created uncertainty in the approval of various financial products and could significantly impact the crypto market.
In an unexpected development, NYSE has scrapped its plans to list Bitcoin (BTC) ETF options. This move has led to increased uncertainty regarding the approval of various financial products.
The development has been reported by multiple stakeholders, traders, and analysts. One such report came from James Seyffart who reported, “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.”
Details of the Withdrawal
As per an official report, NYSE withdrew its plans to list and trade options for two spot Bitcoins ETFs. The proposal to the SEC included listing ETF options for Grayscale Bitcoin and Bitwise BTC ETFs.
This withdrawal follows a series of similar decisions by various firms. Recently, exchanges such as MIAX Pearl and BOX also withdrew such proposals. Even CBOE withdrew its application but resubmitted a similar filing, giving hope for SEC approval in the future.
Regulatory Concerns Around BTC ETFs
The main reason for these withdrawals is the increasing regulatory uncertainty in the U.S., largely due to delays from the SEC. Since the approval of the first ETFs in January, the SEC has repeatedly delayed and postponed clearance for various ETFs.
These exchanges have responded by submitting plans and then withdrawing them, showcasing the existing regulatory issues. The SEC’s prolonged review procedures and delays have been a hindrance to providing clear Bitcoin ETF options.
Impact on the Crypto Market
The withdrawal of NYSE’s plans and similar decisions by other exchanges could significantly impact the crypto market. Approval of BTC ETF options provides investors with opportunities to hedge and wager on prices. Therefore, decreased options could disadvantage investors and the overall crypto market.
At the time of writing, BTC ETFs were experiencing a positive inflow, according to data from Coinglass. In the last 24 hours, the assets have recorded a net flow of $11.1 million, with a total inflow of $53.74 billion.
The data showed an increasing demand for ETFs, indicating increased investor interest. Therefore, NYSE’s recent decision to withdraw their proposal could be a setback for the market. The positive market sentiment towards Bitcoin ETFs suggests that providing investors with more options would benefit the market.
