Multiple US exchanges withdraw proposals for spot Bitcoin ETF options

Nasdaq ISE, LLC has retracted its proposals to list and trade options on spot Bitcoin and Ethereum ETFs. This decision was officially noted on the U.S. Securities and Exchange Commission's (SEC) website on August 13, following the filing of two proposed rule changes earlier this month.

Details of the Withdrawn Proposals

The proposed rule changes aimed to amend Options 4, Section 3(h) to enable Nasdaq ISE to list options on trusts holding Bitcoin and Ether. The proposals were published for public comment on August 12, but no feedback was received before the exchange withdrew them.

Broader Trends Among Exchanges

Nasdaq’s move reflects a wider trend among U.S. exchanges. Recently, MIAX, MIAX Pearl, and BOX Exchange also withdrew their proposals for options on spot Bitcoin ETFs. Cboe had previously withdrawn its application for such options but later refiled, indicating ongoing discussions with the SEC.

NYSE American LLC’s Withdrawal

On August 15, NYSE American LLC also withdrew its proposal to list options on the Bitwise and Grayscale Bitcoin ETFs. This retraction follows a similar pattern among exchanges.

James Seyffart, an analyst at Bloomberg Intelligence, noted that Nasdaq and NYSE might refile their proposals soon. He suggested that Cboe's reapplication could set a precedent for other exchanges looking to navigate SEC discussions. Seyffart expects these exchanges to potentially refile their applications in the near future.