Cboe Submits Revised Applications for Bitcoin and Ethereum Options Listing in the US

Cboe Exchange, a US securities exchange, has submitted a revised application to regulators for the potential listing of options tied to Bitcoin (BTCUSD) and Ether (ETHUSD) exchange-traded funds (ETFs), as per filings dated August 28. The exchange’s proposal aims to list options linked to ETH and BTC ETFs issued by various asset managers, including Fidelity, 21 Shares, Invesco, VanEck, Grayscale, Bitwise, Blackrock’s iShares, and Valkyrie.

The suggested rule change would classify the spot cryptocurrency ETFs similarly to commodities-based ETFs like the Goldman Sachs Physical Gold ETF and the iShare Silver Trust as securities suitable for options trading, as indicated in the BTC and ETH options filings.

This development comes amidst a surge of interest in options on spot cryptocurrencies in the US. On August 27, Nasdaq, another US securities exchange, revealed intentions to list Bitcoin options tied to the CME CF Bitcoin Real-Time Index (BRTI), a benchmark reflecting BTC’s spot price.

In August, the New York Stock Exchange (NYSE) American and Nasdaq International Securities Exchange (ISE) withdrew four applications to the Securities and Exchange Commission (SEC) related to potential BTC options listings. Additionally, on August 8, Cboe retracted an earlier application to list options on BTC ETFs.

Bloomberg Intelligence analyst James Seyffart noted, “There’s definitely some movement on Bitcoin ETF options,” hinting at potential feedback from the SEC. Bloomberg forecasts the launch of spot BTC options in the fourth quarter.

Options are contractual agreements that provide the right to buy or sell an underlying asset at a predetermined price, known as “call” or “put” options. They are commonly utilized as hedging tools and are favored by speculators.

Cryptocurrency derivatives on regulated exchanges are gaining traction in the US. As of the market close on August 9, open options interest on BTC futures ETFs surpassed $3.25 billion, based on data from The Options Clearing Corporation, an industry self-regulatory organization (SRO).

Exchanges are also looking to list Solana (SOLUSD) ETFs. Despite the withdrawal of Cboe Global Markets’ regulatory filing proposing to list the fund on its exchange, asset manager VanEck’s plans for a Solana ETF remain active, according to a post by Matthew Sigel, VanEck’s head of digital assets research.