- The head of Grayscale supported the initiative to develop the options market for cryptocurrency ETFs.
- Sonnenschein expressed confidence that the product will benefit both retail and institutional investors.
- According to the entrepreneur, the NYSE and other stock exchanges have filed applications to change their listing procedures to launch options.
Grayscale Investments CEO Michael Sonnenshein supported the launch of an options market for spot Bitcoin ETFs. According to the entrepreneur, the appearance of this product will bring tangible benefits to institutional and retail investors.
He noted that the first Bitcoin futures ETFs entered the market on October 19, 2021. The next day after this, exchange options on them became available to clients. At the same time, the launch of spot Bitcoin ETFs, which took place on January 11, 2024, did not lead to the immediate release of the corresponding type of derivatives.
According to Sonnenschein, companies have a long way to go before the US Securities and Exchange Commission (SEC) approves this investment product. In terms of complexity, he compared it to launching cryptocurrency ETFs themselves.
The head of Grayscale also stated that New York Stock Exchange (NYSE) and certain other market participants have filed Form 19b-4 filings with the SEC. In them, the Commission proposes to allow the listing of options on cryptocurrency ETFs.
The launch of the mentioned product will allow investors to better navigate market conditions and increase the efficiency of pricing, Sonnenschein believes. In addition, he said, applications for options on spot Bitcoin ETFs do not have to go through a lengthy SEC review process. The head of Grayscale insists on rapid approval of the product.
Let us recall that we previously wrote that Michael Sonnenschein predicted the collapse of most spot Bitcoin ETFs.