Bitcoin’s (BTC) successful run after the approval of spot crypto Exchange-Traded Fund (ETF) approval by the US Securities and Exchange Commission (SEC) has motivated biggies to apply for more. In the latest mover, Grayscale Investments is urging the regulator to grant options on its spot BTC ETF. The new product would expand the product’s accessibility to a new class of investors.
Grayscale seeks approval from SEC
According to reports, Grayscale CEO Michael Sonnenshein in a letter sent to the SEC, advocated for the approval of options on its Grayscale Bitcoin Trust (GBTC). He highlighted that a rejection would “unfairly discriminate” against shareholders. He even noted that the earlier approval of options on ETFs which were linked to bitcoin futures.
Grayscale CEO mentioned the importance of allowing options on Bitcoin ETPs like GBTC. He stated that it is vital for the interests of GBTC and all spot bitcoin ETP investors to have access to exchange listed options.
The world’s biggest digital asset is running high on bullish sentiments. Back to back positive signals like approval of crypto ETFs and halving events coming in had worked in its favor. Bitcoin recorded a monthly gain of over 47%, the largest since December 2020.
In a big leap, Bitcoin went on to breach the long time untouched price level of $63,000. BTC saw a minor correction on Friday morning as its price dropped by around 1.16%. It is trading at an average price of $61,916, at the press time.
BTC’s 24 hour trading volume took a dip of 41% to stand at $54.5 billion as the market looks for stable ground. However, it is holding a market cap of a massive $1.21 trillion.
Bitcoin to lead ahead?
As the sentiments remain bullish, asset managers are swiftly filing proposals for a new wave of crypto products. This includes those that use options to expand crypto’s volatility. The global crypto saw a marginal decline in the last 24 hours. The total market cap now stands at $2.3 trillion. However, the 24 hour trading volume has dropped by 33% to stand at $134 billion.
It is important to note that the regulator’s approval for options Bitcoin ETFs could take months. The SEC oversees rule changes for listing options. However, approval from the Commodity Futures Trading Commission (CFTC) may also be required ahead as Bitcoin is classified as a commodity.
Sonnenshein argued that options would bring BTC further into the regulatory perimeter by allowing additional regulated market participants. This includes contract merchants and broker-dealers, to trade the products.
