At the time of writing, BTC had retreated to $69,740, and we had mentioned about 12 hours ago that such a drop could be coming. Altcoins have turned red again, and eyes are now on the upcoming US inflation data tomorrow. What’s the latest from the SEC front? Why is the date of May 29 so important for Bitcoin?
Potential Rise for Bitcoin
The US Securities and Exchange Commission (SEC) this week issued a new notice, postponing its expected decision on whether to allow the New York Stock Exchange (NYSE) to start option trading for spot Bitcoin ETFs. The NYSE is currently seeking approval to initiate option trading for approved Spot Bitcoin ETFs. The institution’s announcement set May 29, 2024, as the decision date for approval or rejection.
The two spot Bitcoin ETFs in question were issued by Bitwise and Grayscale. In the February 9 application, the NYSE, as a self-regulatory organization (SRO), had to first submit a rule change and allow for public comment. The regulator had 45 days to allow for comments and make a decision.
Spot Bitcoin ETF Option Application
Grayscale CEO Michael Sonnenshein and Prof. James Angel were two experts who submitted their opinions. The professor sent a 13-page comment letter and addressed the issue comprehensively. In the introduction of his assessment, he wrote;
“Dear SEC: Instead of wasting time looking at these rule applications, don’t you have better things to do?”
We have all seen how strict the regulatory body has been regarding crypto. This has triggered such significant negative discrimination that two of the five members (Pierce and Uyeda) spoke of their institution trying to strangle crypto companies. In court, the SEC has faced criticism from judges for acting arbitrarily and engaging in negative discrimination.
So what happens if the SEC allows options on May 29? Granting permission could turn into a significant opportunity for the NYSE. By comparison, the SPDR Gold Shares ETF (GLD) has 2.8 million option contracts in open interest. If BTC achieves a similar outcome, it could mean an initial price increase with massive additional demand.
