United States of America: Opened consultation on authorisation of options on ETFs holding Bitcoin for BOX Exchange

On 25 March 2024, the Securities and Exchange Commission (SEC) opened a public consultation on a proposed rule change to amend Exchange Rule 5020 by BOX Exchange LLC, until 21 May 2024. BOX Rule 5020 pertains to the criteria for underlying securities. The current Exchange Rule 5020(h) stipulates that subject to specific criteria, exchange-traded funds (ETFs) eligible for options trading may include those representing interests in particular trusts holding financial instruments, money market instruments, or precious metals considered commodities. This amendment aims to authorise the listing and trading of options on exchange-traded funds (ETFs) that represent interests in trusts holding Bitcoin Exchange-Traded Products (ETPs). The proposed rule change is intended to align with competitive filings by other exchanges and to offer investors the opportunity to gain exposure to bitcoin through options trading on regulated platforms. Following the public comment period, the SEC will decide within 45 to 90 days whether to approve the rule change, amend it, or require further review to ensure it meets all regulatory standards.