Michael Sonnenshein, CEO of Grayscale, has called on regulators to allow exchange-listed options for spot Bitcoin ETFs. Through an X post on February 5, he emphasized the benefits of options for investors, including enhanced price discovery and market navigation.

Options trading involves contracts that, for the buyer, grant the right, but not the obligation, to buy or sell a specific financial asset at a set price before a certain date. These options, regulated by the CFTC and SEC, facilitate speculation and hedging strategies for investors.

Sonnenshein referenced the automatic effectiveness of options trading following the SEC's approval of the first Bitcoin futures ETF in October 2021. Unlike futures ETFs, spot Bitcoin ETFs lack a streamlined process for options approval, requiring a review similar to the initial ETF approval process.

He advocated for consistent treatment across financial products, noting recent efforts by exchanges to amend listing standards for commodity-based ETF options, including those for spot Bitcoin.

The SEC is currently reviewing applications for options on spot Bitcoin ETFs, with a decision on BlackRock’s proposal with Cboe expected soon. Sonnenshein's post underscores the need for equitable regulatory treatment of cryptocurrency assets and related financial products.