United States of America: Opened consultation on Cboe Options Proposal for Bitcoin ETP Options Trading

On 25 January 2024, the Securities and Exchange Commission opened a public consultation regarding a proposal by Cboe Exchange, Inc. to amend Rule 4.3 for the listing and trading of options on Bitcoin Exchange-Traded Products (ETPs). These ETPs, designated as "Units," are structured to provide investors with access to bitcoin markets through interests in a trust holding bitcoin, thereby tracking the performance of bitcoin. The proposed amendment specifically seeks to include Bitcoin ETPs among the units that can underlie options, thereby expanding the current range that includes various securities, financial instruments, and precious metals. Cboe asserts its capacity to manage the new options series with an adequate system infrastructure and surveillance mechanisms to prevent market manipulation. Following the conclusion of the public comment period, the SEC will make a determination within 45 to 90 days as to whether to approve the proposed rule change, amend it, or require further review to ensure that it meets all regulatory standards.