Bitcoin (CRYPTO: BTC) options traders have welcomed the Chicago Board Options Exchange (BATS:CBOE) withdrawing and resubmitting its application to list options on spot Bitcoin ETFs.

What Happened: This development, while initially appearing like a setback, is being interpreted by industry analysts as a positive sign of potential engagement from the Securities and Exchange Commission (SEC).

"Just as 'comments from the SEC' was a good sign in our ETF approval odds, we think this is a good sign here too," tweeted Eric Balchunas, Senior ETF Analyst at Bloomberg Intelligence, echoing a sentiment shared by many.

The logic behind this optimism is that if the SEC intended to outright deny the application, there would be little point in further discussion.

James Seyffart, another prominent ETF analyst, first reported the news on X (formerly Twitter), stating, "There's definitely some movement on Bitcoin ETF options. CBOE just withdrew their application for options on spot Bitcoin ETFs. Which sounds like a bad thing at first... But at the same time they just re-filed a brand new and updated application."

However, it's important to note that this is not the final hurdle. While CBOE's refiling suggests positive interaction with the SEC, other approvals are still needed. "I don't know if I jinxed it or what," Seyffart later tweeted, "But three exchanges have withdrawn their applications to list the spot Bitcoin ETF options since I tweeted this."

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He emphasized that the key applications to watch are from major exchanges like Nasdaq, NYSE and CBOE for listing the underlying ETFs themselves.

Despite the remaining steps, analysts remain optimistic about the timeline.

"We think the Bitcoin ETF options happen in 4th quarter this year," Seyffart concluded. "Final deadline for SEC decision is ~Sept. 21 but there's more steps needed after that from OCC & CFTC."

What's Next: This development underscores the growing interest in Bitcoin-related investment products, with options offering a way to manage risk and potentially profit from Bitcoin's price movements.

For those interested in learning more about the future of digital assets and the potential impact of Bitcoin ETF options, Benzinga's upcoming Future of Digital Assets event on Nov. 19 promises to be a valuable resource.

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