Miami International Exchange MIAX just withdrew its application for trading options in the Spot Bitcoin ETF. This withdrawal marks the first instance since the approval of a spot Bitcoin ETF by the US Securities and Exchange Commission (SEC) in January this year. The announcement of the withdrawal was made through a document filed with the SEC on August 1.
Regulatory Uncertainty Leads to MIAX’s Withdrawal
The decision by MIAX to withdraw its proposal comes amidst regulatory uncertainty and concerns raised by Better Markets regarding the potential risks associated with such products. Better Markets, a non-partisan non-profit organization, highlighted the dangers that investors and the financial sector could face. Despite MIAX’s decision, other exchanges continue to pursue similar licenses, reflecting the growing interest in cryptocurrency derivatives.
According to Bloomberg Intelligence analyst James Seyffart, there is optimism that the options will eventually be approved. He anticipates potential approval by the end of the following month. Following the final decision expected on September 21, Seyffart suggests that additional action will be taken by the Option Clearing Corporation (OCC) and the Commodity Futures Trading Commission (CFTC).
we think #bitcoin ETF options will be launched in the fourth quarter of this year. The final deadline for the SEC’s decision is around September. 21 But the OCC and CFTC will need to take more steps thereafter.
Below are some ETFs related to BTC and ETH, including leveraged ETFs with options. copy @ericbalciunas pic.twitter.com/USauv6QaFs
— James Seyff (@JSeyff) August 8, 2024
Industry and Market Response to Spot Bitcoin ETF Approval
The approval of the spot Bitcoin ETF option was met with enthusiasm by industry experts, viewing it as a natural progression akin to previous events like the spot gold ETF. Former CEO of Grayscale, Michael Sonnenshein, echoed this sentiment, stating that the approval aligns with established regulatory frameworks. While MIAX decided to withdraw, other market centers, such as NYSE Arca, have put forth their own proposals.
Reactions to MIAX’s withdrawal have been mixed, with some interpreting it as a precautionary step due to regulatory instability. Conversely, key representatives in the sector maintain a positive outlook on the inclusion of cryptocurrencies within existing financial instruments.
Also Read: Wells Fargo May Soon Offer Bitcoin ETF to Select Clients
