Nasdaq, NYSE Withdraw Bitcoin ETF Options Applications

Nasdaq and the New York Stock Exchange (NYSE) have withdrawn their applications to list and trade options based on two U.S. spot Bitcoin ETFs.Per an August 14 Securities and Exchange Commission (SEC) filing, the NYSE has withdrawn the proposed rule change that would enable it to list and trade options on the Bitwise Bitcoin ETF (BITB) and the Grayscale Bitcoin Trust (GBTC).The proposal was originally published for public comment in February, with the SEC extending its review period in April and July.Nasdaq followed suit on August 15, according to an SEC filing, which notes that its proposal was originally published for comment in March, with formal proceedings being instituted by the SEC in April.In a tweet, Bloomberg analyst James Seyffart noted that both Nasdaq and the NYSE are expected to “re-file over the coming days or weeks like we saw from CBOE.”NASDAQ & NYSE have joined CBOE in withdrawing their applications for allowing options to trade on the Bitcoin ETFs. I’m expecting them to re-file over the coming days or weeks like we saw from CBOE. https://t.co/8trtqNBVTx pic.twitter.com/YC1U2SgAVA— James Seyffart (@JSeyff) August 15, 2024CBOE withdrew its own application to trade options based on Bitcoin ETFs earlier in the month, filing an updated application with “a lot more meat to it,” as Seyffart noted.However, he cautioned that there was “no way to know for certain” if the SEC was engaging with CBOE on its application, and that the refiled application would likely result in the deadline being shifted back to late April 2025.Bitcoin ETF flows shifted to positive Thursday after Wednesday’s net outflows, per data from Farside Investors. Outflows from the Grayscale Bitcoin Trust slowed to $25 million, while Grayscale’s Bitcoin Mini Trust (BTC) pulled in $13.7 million following two days of neutral flows.