- NYSE American LLC recently withdrew its application to list options on spot Bitcoin ETFs.
- Previously, the company had proposed a rule change to list these options specifically for the Bitwise Bitcoin ETF and the Grayscale Bitcoin ETF.
- Meanwhile, the SEC approved the first leveraged exchange-traded fund (ETF) targeting MicroStrategy.
Explore the latest developments in the cryptocurrency ETF landscape as NYSE American LLC pulls back from its ambitious plans, and learn about the newly approved leveraged MicroStrategy ETF by the SEC.
NYSE American Withdraws Spot Bitcoin ETF Options Application
In a significant move, NYSE American LLC has decided to retract its proposal to list and trade options on two spot Bitcoin ETFs. The company had initially put forth a rule modification to facilitate the listing of these options for the Bitwise Bitcoin ETF and the Grayscale Bitcoin ETF. According to an official statement, “On July 19, 2024, the Commission set a longer period for action on the Proposal. The Exchange withdrew the Proposal on August 9, 2024.”
This withdrawal occurred just a week after other exchanges, including MIAX, MIAX Pearl, and BOX Exchange, also pulled back similar proposals. Additionally, Cboe withdrew its application to list options on spot Bitcoin ETFs, only to refile it later, indicating that the SEC might be playing a more significant role in this process.
SEC Approves First Leveraged Long MicroStrategy ETF
In another key development, Defiance ETFs has announced the launch of MSTX, the United States’ first leveraged long ETF focused on MicroStrategy. According to a press release on Thursday, MSTX aims to give investors a 175% daily long exposure to MicroStrategy. The stock of MicroStrategy, known for being the first publicly traded company to issue a Bitcoin ETF, has surged roughly 98% this year and is currently trading around $136 following a recent stock split.
Defiance CEO Sylvia Jablonski emphasized the significance of SEC approval for their new ETF, highlighting that it offers U.S.-based traders increased leveraged exposure to Bitcoin. “With the introduction of our leveraged long MicroStrategy ETF MSTX, we are enhancing the potential for investors seeking long leveraged exposure to Bitcoin. Given MicroStrategy’s naturally higher beta compared to Bitcoin, MSTX provides a unique opportunity for investors to maximize their leveraged exposure to the Bitcoin market within an ETF wrapper,” Jablonski stated.
Conclusion
The crypto ETF landscape is undergoing substantial changes, with NYSE American LLC’s withdrawal indicating a cautious approach or potential regulatory hurdles. Concurrently, the SEC’s approval of the leveraged long MicroStrategy ETF by Defiance ETFs introduces new opportunities for investors looking to maximize their exposure to Bitcoin. As these developments unfold, market participants should stay informed and consider the evolving regulatory and market dynamics when making investment decisions.
