Summary
TLDR: The SEC delayed a decision on allowing Cboe to list and trade options on bitcoin ETFs until late April. Cboe and other exchanges are seeking to offer options on various bitcoin-related products. Grayscale is pushing for options on its fund, GBTC, arguing that it should be allowed just like options on products holding derivatives of an asset.
Key Points
1. The Securities and Exchange Commission delayed a decision on letting Cboe list and trade options on bitcoin ETFs.
2. Cboe first applied to list and trade options on the newly launched bitcoin ETFs back in January. The SEC said on Wednesday it’s delaying a decision on the proposed rule change until late April.
3. Options can be used to hedge risk, allowing a party to enter into a contract where they can buy or sell a financial product at a certain price in a specified window of time.