According to filings with the SEC, Nasdaq ISE (International Securities Exchange) has withdrawn proposals to list and trade options on spot Bitcoin and Ethereum exchange-traded funds (ETFs).

The exchange withdrew the proposals Tuesday, stating that no comments were received after the proposal was published in the Federal Register on August 12, 2024. The withdrawal notices follow similar actions by other exchanges in recent days.

Wave of Withdrawals

MIAX, MIAX Pearl, and BOX Exchange have also retracted their respective proposals for listing and trading options on spot Bitcoin ETFs.

Cboe initially withdrew its application but refiled it, potentially indicating ongoing engagement with the SEC.

NYSE American LLC joined the trend on Thursday by withdrawing its proposal to list and trade options on the Bitwise Bitcoin ETF and the Grayscale Bitcoin ETF.

These moves come as the SEC has not approved trading for options products on the spot Bitcoin and Ethereum ETFs.

Despite the withdrawals, Bloomberg Intelligence Analyst James Seyffart anticipates that Nasdaq and NYSE will likely refile their proposals for listing and trading options on spot Bitcoin ETFs soon. Seyffart stated:

"I expect them to refile over the coming days or weeks, as we saw from CBOE."

Regulatory Recalibration

The recent wave of proposal withdrawals and potential refilings suggests a period of regulatory recalibration in the crypto ETF options market.

This adjustments phase indicates that exchanges closely monitor the SEC's stance and may prepare more robust proposals to meet regulatory requirements.

The cryptocurrency market continues to evolve, and exchanges remain agile in responding to regulatory feedback. These developments reflect a dynamic landscape in which exchanges and regulatory bodies are in continuous dialogue to bring new financial products to market.