NYSE American Withdraws Proposal to List Options on Spot Bitcoin ETFs Amid Regulatory Scrutiny

NYSE American LLC has withdrawn its proposal to list and trade options on two spot Bitcoin exchange-traded funds (ETFs), according to a filing released on Thursday. The proposal, initially submitted to facilitate the listing of options on the Bitwise Bitcoin ETF and the Grayscale Bitcoin ETF, was pulled back on August 9, 2024. This followed a move by the Securities and Exchange Commission (SEC) on July 19 to extend its review period for the rule change.

The exchange did not provide further comments on the withdrawal. This decision comes on the heels of similar actions by other exchanges, including MIAX, MIAX Pearl, and BOX Exchange, which also withdrew their proposals to list options on spot Bitcoin ETFs. Cboe, another major exchange, briefly withdrew its application last week but refiled it, which could indicate that the SEC is actively engaging with the process of regulating options on spot Bitcoin ETFs.

Earlier this year, in January, the SEC approved several spot Bitcoin ETFs from major firms such as BlackRock, Grayscale, and Fidelity. While some exchanges are exploring the possibility of listing options on these ETFs, the SEC's approval is still pending for these initiatives. NYSE American has also proposed a rule change to list and trade options on Bitwise’s and Grayscale’s spot Ethereum ETFs.

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