Michael Sonnenshein, then CEO of Grayscale, urged US regulators in February 2024 to approve exchange-listed options for spot Bitcoin exchange-traded funds (ETFs). In a post on X, Sonnenshein argued that options could help investors with price discovery, risk management and income strategies. He also pointed out that Grayscale Bitcoin Trust shares had traded publicly since 2015 but did not have listed options.
At the time, exchanges were already seeking approval to list options on spot Bitcoin ETFs. The NYSE Arca filing cited in the original report sought changes that would allow options on commodity-based exchange-traded products, including GBTC.
The push came shortly after the SEC approved several spot Bitcoin ETFs in January 2024. In its approval statement, the regulator stressed that the decision was limited to Bitcoin and did not amount to approval or endorsement of other crypto assets. The SEC also pointed to the court ruling involving Grayscale as an important factor in the change in circumstances.
As we look ahead, I think it’s never been more important for the #crypto and ETF communities alike to advocate for the development of a robust listed options market for spot #bitcoin ETFs. Although $GBTC has been in the public market since 2015, it was never accompanied by listed…
— Sonnenshein (@Sonnenshein) February 5, 2024
Why Bitcoin ETF options mattered
Options would give investors another way to manage exposure to Bitcoin without simply buying or selling ETF shares. Traders could use calls and puts to hedge positions, express views on price movements or construct income strategies.
That made the absence of options on the newly approved spot Bitcoin ETFs an important gap in the US market. Bitcoin futures ETFs had already demonstrated demand for regulated derivatives products, but spot ETFs gave investors direct exposure to the underlying asset through a different structure.
Sonnenshein’s argument also came as exchanges worked through the regulatory process required to list the products. Options on ETFs could not simply begin trading when the underlying funds received approval.
The development was therefore about more than Grayscale. Approval of ETF options would give the spot Bitcoin ETF market a deeper derivatives layer and potentially make these products more useful to institutional investors.
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GBTC options eventually received approval
The regulatory outcome came later in 2024. On October 18, 2024, the SEC approved the listing and trading of options on GBTC on NYSE American. The exchange subsequently received authority to trade the options on November 22. The SEC also approved options on other spot Bitcoin ETFs, including Grayscale’s Bitcoin Mini Trust, Bitwise Bitcoin ETF, iShares Bitcoin Trust, Fidelity Wise Origin Bitcoin Fund and ARK 21Shares Bitcoin ETF.
The framework has since expanded further. In July 2025, the SEC approved changes allowing FLEX options on GBTC and removed the previous 25,000-contract position and exercise limit for the fund’s standard options.
There has also been a change at Grayscale itself. Sonnenshein left the CEO role in 2024, with Peter Mintzberg appointed as his successor effective August 15.
Sonnenshein’s proposal therefore became reality, although he was no longer leading Grayscale when the options market opened. What began as a call for greater flexibility around spot Bitcoin ETFs has since become part of the wider US Bitcoin derivatives market.
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