Federal Register / Vol. 89, No. 231 / Monday, December 2, 2024 / Notices 95301 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 101306 

(Oct. 10, 2024), 89 FR 83738. Comments on the 

proposed rule change are available at: https://

www.sec.gov/comments/sr-nyse-2024-48/ 

srnyse202448.htm. 

4 15 U.S.C. 78s(b)(2). 

5 15 U.S.C. 78s(b)(2). 

6 17 CFR 200.30–3(a)(31). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3The Exchange notes that its affiliate exchanges, 

MIAX Options and MIAX Pearl, submitted 

substantively identical proposals. The Exchange 

notes that all the rules of Chapter III of the MIAX 

Options Exchange, including Rules 307 and 309, are 

incorporated by reference to MIAX Pearl and MIAX 

Sapphire. The Exchange also notes that all of the 

rules of Chapter III of the MIAX Options Exchange, 

including Rules 307 and 309, and the rules of 

Chapter IV of the MIAX Options Exchange, 

including Rule 402, are incorporated by reference 

to MIAX Emerald. 

4On January 10, 2024, the Commission approved 

proposals by NYSE Arca, Inc., The Nasdaq Stock 

Market LLC, and Cboe BZX Exchange, Inc. to list 

and trade the shares of 11 bitcoin-based 

commodity-based trust shares and trust units, 

including the iShares Bitcoin Trust. See Securities 

Exchange Act Release No. 99306 (Jan. 10, 2024), 89 

Continued 

opens on December 3, 2024 and ends on 

January 2, 2025. View the full 

information request and submit 

comments at https://www.reginfo.gov/ 

public/do/PRAViewICR?ref_

nbr=202409-3235-016 or email 

comments to MBX.OMB.OIRA.SEC_

desk_officer@omb.eop.gov. 

Dated: November 25, 2024. 

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–28124 Filed 11–29–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101746; File No. SR–NYSE– 

2024–48] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Designation of a Longer Period for 

Commission Action on a Proposed 

Rule Change to Amend Section 

802.01C of the NYSE Listed Company 

Manual (Price Criteria for Capital or 

Common Stock) To Restrict the Use of 

Reverse Stock Splits in Certain 

Circumstances 

November 25, 2024. 

On September 30, 2024, New York 

Stock Exchange LLC (‘‘NYSE’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

to Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to amend Section 802.01C (Price 

Criteria for Capital or Common Stock) of 

the NYSE Listed Company Manual to 

provide that (i) a company that falls 

below the price criteria set forth therein 

and effects a reverse stock split to regain 

compliance will not be eligible for a 

compliance period in certain 

circumstances, and (ii) a company may 

not effectuate a reverse stock split if it 

would result in the company falling 

below continued listing requirements. 

The proposed rule change was 

published for comment in the Federal 

Register on October 17, 2024.3

Section 19(b)(2) of the Act 4 provides 

that within 45 days of the publication of 

notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding, or as to which the 

self-regulatory organization consents, 

the Commission will either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day after 

publication of the notice for this 

proposed rule change is December 1, 

2024. The Commission is extending this 

45-day time period. 

The Commission finds it appropriate 

to designate a longer period within 

which to take action on the proposed 

rule change, so that it has sufficient time 

to consider the proposed rule change 

and comments received. Accordingly, 

the Commission, pursuant to Section 

19(b)(2) of the Act,5 designates January 

15, 2025, as the date by which the 

Commission shall either approve or 

disapprove, or institute proceedings to 

determine whether to disapprove, the 

proposed rule change (File No. SR– 

NYSE–2024–48). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–28116 Filed 11–29–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101730; File No. SR– 

SAPPHIRE–2024–38] 

Self-Regulatory Organizations; MIAX 

Sapphire, LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Exchange 

Rule 402, Criteria for Underlying 

Securities To List and Trade Options 

on the Fidelity Wise Origin Bitcoin 

Fund (the ‘‘Fidelity Fund’’) and the ARK 

21Shares Bitcoin ETF (the ‘‘ARK 21 

Fund’’) 

November 25, 2024. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on November 

21, 2024, MIAX Sapphire, LLC 

(‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) a proposed rule change 

as described in Items I and II below, 

which Items have been prepared by the 

Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Exchange Rule 402, Criteria for 

Underlying Securities. The text of the 

proposed rule change is available on the 

Exchange’s website at https://

www.miaxglobal.com/markets/usoptions/miax-sapphire/rule-filings, at 

the Exchange’s principal office, and at 

the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

Exchange Rule 402, Criteria for 

Underlying Securities,3 to allow the 

Exchange to list and trade options on 

Fidelity Wise Origin Bitcoin Fund (the 

‘‘Fidelity Fund’’) and the ARK 21Shares 

Bitcoin ETF (the ‘‘ARK 21 Fund’’ and, 

with the Fidelity Fund, the ‘‘Bitcoin 

Funds’’), designating the Bitcoin Funds 

as appropriate for options trading on the 

Exchange.4 This is a competitive filing 


ddrumheller on DSK120RN23PROD with NOTICES1
95302 Federal Register / Vol. 89, No. 231 / Monday, December 2, 2024 / Notices 

FR 3008 (Jan. 17, 2024) (order approving File Nos. 

SR–NYSEARCA–2021–90; SR–NYSEARCA–2023– 

44; SR–NYSEARCA–2023–58; SR–NASDAQ–2023– 

016; SR–NASDAQ–2023–019; SR–CboeBZX–2023– 

028; SR–CboeBZX–2023–038; SR–CboeBZX–2023– 

040; SR–CboeBZX–2023–042; SR–CboeBZX–2023– 

044; SR–CboeBZX–2023–072) (‘‘Bitcoin ETP 

Order’’). 

5See Securities Exchange Act Release No. 101387 

(October 18, 2024), 89 FR 84948 (October 24, 2024) 

(SR–CBOE–2024–35) (Self-Regulatory 

Organizations; Cboe Exchange, Inc.; Notice of Filing 

of Amendment Nos. 2 and 3 and Order Granting 

Accelerated Approval of a Proposed Rule Change, 

as Modified by Amendment Nos. 2 and 3, to Permit 

the Listing and Trading of Options on Bitcoin 

Exchange Traded Funds). 

6See Exchange Rule 402(i), which permits 

options trading on ETFS that: (1) represent interests 

in registered investment companies (or series 

thereof) organized as open-end management 

investment companies, unit investment trusts or 

similar entities that hold portfolios of securities 

and/or financial instruments (‘‘Funds’’), including, 

but not limited to, stock index futures contracts, 

options on futures, options on securities and 

indices, equity caps, collars and floors, swap 

agreements, forward contracts, repurchase 

agreements and reverse repurchase agreements (the 

‘‘Financial Instruments’’), and money market 

instruments, including, but not limited to, U.S. 

government securities and repurchase agreements 

(the ‘‘Money Market Instruments’’) comprising or 

otherwise based on or representing investments in 

broad-based indexes or portfolios of securities and/ 

or Financial Instruments and Money Market 

Instruments (or that hold securities in one or more 

other registered investment companies that 

themselves hold such portfolios of securities and/ 

or Financial Instruments and Money Market 

Instruments); (2) represent interests in a trust or 

similar entity that holds a specified non-U.S. 

currency or currencies deposited with the trust 

which when aggregated in some specified minimum 

number may be surrendered to the trust or similar 

entity by the beneficial owner to receive the 

specified non-U.S. currency or currencies and pays 

the beneficial owner interest and other distributions 

on the deposited non-U.S. currency or currencies, 

if any, declared and paid by the trust (‘‘Currency 

Trust Shares’’); (3) represent commodity pool 

interests principally engaged, directly or indirectly, 

in holding and/or managing portfolios or baskets of 

securities, commodity futures contracts, options on 

commodity futures contracts, swaps, forward 

contracts and/or options on physical commodities 

and/or non-U.S. currency (‘‘Commodity Pool 

ETFs’’); (4) are issued by the are issued by the 

SPDR® Gold Trust, the iShares COMEX Gold Trust, 

the iShares Silver Trust, the ETFS Silver Trust, the 

Aberdeen Standard Physical Gold Trust, the ETFS 

Palladium Trust, the ETFS Platinum Trust, the 

Sprott Physical Gold Trust, or the iShares Bitcoin 

Trust; or (5) represent an interest in a registered 

investment company (‘‘Investment Company’’) 

organized as an open-end management company or 

similar entity, that invests in a portfolio of 

securities selected by the Investment Company’s 

investment adviser consistent with the Investment 

Company’s investment objectives and policies, 

which is issued in a specified aggregate minimum 

number in return for a deposit of a specified 

portfolio of securities and/or a cash amount with a 

value equal to the next determined net asset value 

(‘‘NAV’’), and when aggregated in the same 

specified minimum number, may be redeemed at a 

holder’s request, which holder will be paid a 

specified portfolio of securities and/or cash with a 

value equal to the next determined NAV (‘‘Managed 

Fund Share’’); provided that all of the conditions 

listed in (5)(i) and 5(ii) are met. 

7The trust may include minimal cash. 

8Subparagraphs a and b of Exchange Rule 402 

provide for guidelines to be used by the Exchange 

when evaluating potential underlying securities for 

Exchange option transactions. 

9The criteria and guidelines for a security to be 

considered widely held and actively traded are set 

forth in Exchange Rule 403(b). 

10An ‘‘NMS stock’’ means any NMS security 

other than an option, and an ‘‘NMS security’’ means 

any security or class of securities for which 

transaction reports are collected, processed, and 

made available pursuant to an effective transaction 

reporting plan (or an effective national market 

system plan for reporting transaction in listed 

options). See 17 CFR 242.600(b)(64) (definition of 

‘‘NMS security’’) and (65) (definition of ‘‘NMS 

stock’’). 

based on a similar proposal submitted 

by Cboe Exchange, Inc. (‘‘Cboe’’) and 

approved by the Securities and 

Exchange Commission 

(‘‘Commission’’).5

Current Exchange Rule 402(i)(4) 

provides that securities deemed 

appropriate for options trading include 

shares or other securities (‘‘Exchange 

Traded Fund Shares’’ or ‘‘ETFs’’) that 

represent certain types of interests,6

including interests in certain specific 

trusts that hold financial instruments, 

money market instruments, or precious 

metals (which are deemed 

commodities). 

The Bitcoin Funds are Bitcoin-backed 

commodity ETFs structured as trusts. 

Similar to any ETFs currently deemed 

appropriate for options trading under 

Exchange Rule 402(i), the investment 

objective of each Bitcoin Fund is for its 

shares to reflect the performance of 

Bitcoin (less the expenses of the trust’s 

operations), offering investors an 

opportunity to gain exposure to Bitcoin 

without the complexities of Bitcoin 

delivery. As is the case for ETFs 

currently deemed appropriate for 

options trading, a Bitcoin Fund’s shares 

represent units of fractional undivided 

beneficial interest in the trust, the assets 

of which consist principally of Bitcoin 

and are designed to track Bitcoin or the 

performance of the price of Bitcoin and 

offer access to the Bitcoin market.7 The 

Bitcoin Funds provide investors with 

cost-efficient alternatives that allow a 

level of participation in the Bitcoin 

market through the securities market. 

The primary substantive difference 

between Bitcoin Funds and ETFs 

currently deemed appropriate for 

options trading are that ETFs may hold 

securities, certain financial instruments, 

and specified precious metals (which 

are deemed commodities), while Bitcoin 

Funds hold Bitcoin (which is also 

deemed a commodity). 

The Exchange believes each Bitcoin 

Fund satisfies the Exchange’s initial 

listing standards for ETFs on which the 

Exchange may list options. Specifically, 

each Bitcoin Fund satisfies the initial 

listing standards set forth in Exchange 

Rule 402(i)(5)(i), as is the case for other 

ETFs on which the Exchange lists 

options (including trusts that hold 

commodities). Exchange Rule 

402(i)(5)(i) requires that the ETFs must 

either (1) meet the criteria and standards 

set forth in Exchange Rule 402(a) or 

402(b),8 or (2) be available for creation 

or redemption each business day from 

or through the issuer in cash or in kind 

at a price related to net asset value, and 

the issuer must be obligated to issue 

ETFs in a specified aggregate number 

even if some or all of the investment 

assets required to be deposited have not 

been received by the issuer, subject to 

the condition that the person obligated 

to deposit the investments has 

undertaken to deliver the investment 

assets as soon as possible and such 

undertaking is secured by the delivery 

and maintenance of collateral consisting 

of cash or cash equivalents satisfactory 

to the issuer, as provided in the 

respective prospectus. Each Bitcoin 

Fund satisfies Exchange Rule 

402(i)(5(i)(B), as each is subject to this 

creation and redemption process. 

While not required by the Rules for 

purposes of options listings, the 

Exchange believes each Bitcoin Fund 

satisfies the criteria and guidelines set 

forth in Exchange Rule 402. Pursuant to 

Exchange Rule 402, a security (which 

includes ETFs) on which options may 

be listed and traded on the Exchange 

must be duly registered (with the 

Commission) and be an NMS stock (as 

defined in Rule 600 of Regulation NMS 

under the Act, and be characterized by 

a substantial number of outstanding 

shares that are widely held and actively 

traded.9 Each Bitcoin Fund is an NMS 

Stock as defined in Rule 600 of 

Regulation NMS under the Act.10 The 

Exchange believes each Bitcoin Fund is 

characterized by a substantial number of 

outstanding shares that are widely held 

and actively traded. 

As of August 7, 2024, the Bitcoin 

Funds had the following number of 

shares outstanding: 

Bitcoin Fund Shares 

outstanding 

Fidelity Fund ......................... 201,100,100 

ARK 21 Fund ........................ 45,495,000 

Each Bitcoin Fund had significantly 

more than 7,000,000 shares outstanding 

(approximately 29 and 6.5 times that 

amount, respectively), which is the 

minimum number of shares of a 

corporate stock that the Exchange 

generally requires to list options on that 

stock pursuant to Exchange Rule 

402(b)(1). The Exchange believes this 

demonstrates that each Bitcoin Fund is 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 231 / Monday, December 2, 2024 / Notices 95303 

11The Bitcoin Funds began trading on January 11, 

2024. 

12See Exchange Rule 401, which provides that 

the rights and obligations of holders and writers are 

set forth in the Rules of the Options Clearing 

Corporation (‘‘OCC’’); see also OCC Rules, Chapters 

VIII (which governs exercise and assignment) and 

Chapter IX (which governs the discharge of delivery 

and payment obligations arising out of the exercise 

of physically settled stock option contracts). 

13See Exchange Rule 404(b). The monthly 

expirations are subject to certain listing criteria for 

underlying securities described within Exchange 

Rule 404 and its Interpretations and Policies. 

Monthly listings expire the third Friday of the 

month. The term ‘‘expiration date’’ (unless 

separately defined elsewhere in the OCC By-Laws), 

when used in respect of an option contract (subject 

to certain exceptions), means the third Friday of the 

expiration month of such option contract, or if such 

Friday is a day on which the exchange on which 

such option is listed is not open for business, the 

preceding day on which such exchange is open for 

business. See OCC By-Laws Article I, Section 1. 

Pursuant to Exchange Rule 404(c), additional series 

of options of the same class may be opened for 

trading on the Exchange when the Exchange deems 

it necessary to maintain an orderly market, to meet 

customer demand or when the market price of the 

underlying stock moves more than five strike prices 

from the initial exercise price or prices. Pursuant 

to Exchange Rule 404(e), new series of options on 

an individual stock may be added until the 

beginning of the month in which the options 

contract will expire. Due to unusual market 

conditions, the Exchange, in its discretion, may add 

a new series of options on an individual stock until 

the close of trading on the business day prior to 

expiration. 

14See Exchange Rule 404, Interpretations and 

Policies .02. 

15See Exchange Rule 404, Interpretations and 

Policies .13. 

16See Exchange Rule 404, Interpretations and 

Policies .03. 

17See Exchange Rule 404(d). 

18See Exchange Rule 404, Interpretations and 

Policies .02(e). 

characterized by a substantial number of 

outstanding shares. 

Further, the below table contains 

information regarding the number of 

beneficial holders of the Bitcoin Funds 

as of the specified dates: 

Bitcoin Fund Beneficial 

holders Date 

Fidelity Fund ............................................................................................................................................................ 279,656 6/27/2024 

ARK 21 Fund ........................................................................................................................................................... 69,425 6/26/2024 

As this table shows, each Bitcoin 

Fund has significantly more than 2,000 

beneficial holders (approximately 140 

and 35 times more, respectively), which 

is the minimum number of holders the 

Exchange generally requires for 

corporate stock in order to list options 

on that stock pursuant to Exchange Rule 

402(b)(2). Therefore, the Exchange 

believes the shares of each Bitcoin Fund 

are widely held. 

As demonstrated above, despite the 

fact that the Bitcoin Funds had been 

trading for approximately seven 

months 11 only as of August 7, 2024, the 

six-month trading volume for each as of 

that date was substantially higher than 

2,400,000 shares (approximately 464 

and 124 times that amount, 

respectively), which is the minimum 12- 

month volume the Exchange generally 

requires for a corporate stock in order to 

list options on that security as set forth 

in Exchange Rule 402(b)(4). 

Additionally, as of August 7, 2024, the 

trading volume for each Bitcoin Fund 

was in the top 5% of all ETFs that are 

currently trading. The Exchange 

believes this data demonstrates each 

Bitcoin Fund is characterized as having 

shares that are actively traded. 

Options on the Bitcoin Funds will 

also be subject to the Exchange’s 

continued listing standards set forth in 

Exchange Rule 403(g), for ETFs deemed 

appropriate for options trading pursuant 

to Exchange Rule 402(i). Specifically, 

Exchange Rule 403(g) provides that 

ETFs that were initially approved for 

options trading pursuant to Exchange 

Rule 402(i) shall be deemed not to meet 

the requirements for continued 

approval, and the Exchange shall not 

open for trading any additional series of 

option contracts of the class covering 

that such ETFs, if the ETFs are delisted 

from trading pursuant to Exchange Rule 

403(b)(4), are halted or suspended from 

trading in their primary market. 

Additionally, options on ETFs may be 

subject to the suspension of opening 

transactions in any of the following 

circumstances: (1) in the case of options 

covering ETFs approved for trading 

under Exchange Rule 402(i)(5)(i)(A), in 

accordance with the terms of paragraphs 

(b)(1), (2), and (3) of Exchange Rule 403; 

(2) in the case of options covering ETFs 

approved for trading under Exchange 

Rule 402(i)(5)(i)(B), following the initial 

twelve-month period beginning upon 

the commencement of trading in the 

ETFs on a national securities exchange 

and are defined as an NMS stock, there 

are fewer than 50 record and/or 

beneficial holders of such ETFs for 30 

or more consecutive trading days; (3) 

the value of the index or portfolio of 

securities, non-U.S. currency, or 

portfolio of commodities including 

commodity futures contracts, options on 

commodity futures contracts, swaps, 

forward contracts and/or options on 

physical commodities and/or financial 

instruments and money market 

instruments on which the ETFs are 

based is no longer calculated or 

available; or (4) such other event shall 

occur or condition exist that in the 

opinion of the Exchange makes further 

dealing in such options on the Exchange 

inadvisable. 

Options on each Bitcoin Fund would 

be physically settled contracts with 

American-style exercise.12 Consistent 

with current Exchange Rule 404, which 

governs the opening of options series on 

a specific underlying security (including 

ETFs), the Exchange will open at least 

one expiration month for options on 

each Bitcoin Fund 13 at the 

commencement of trading on the 

Exchange and may also list series of 

options on a Bitcoin Fund for trading on 

a weekly,14 monthly,15 or quarterly 16

basis. The Exchange may also list longterm equity option series (‘‘LEAPS’’) 

that expire from 12 to 39 months from 

the time they are listed.17

Pursuant to Exchange Rule 404, 

Interpretation and Policy .06, which 

governs strike prices of series of options 

on ETFs, the interval between strike 

prices of series of options on ETFs 

approved for options trading pursuant 

to Exchange Rule 402(i) shall be fixed at 

a price per share which is reasonably 

close to the price per share at which the 

underlying security is traded in the 

primary market at or about the same 

time such series of options is first open 

for trading on the Exchange, or at such 

intervals as may have been established 

on another options exchange prior to the 

initiation of trading on the Exchange. 

With respect to the Short Term Options 

Series or Weekly Program, during the 

month prior to expiration of an option 

class that is selected for the Short Term 

Option Series Program, the strike price 

intervals for the related non-Short Term 

Option (‘‘Related non-Short Term 

Option’’) shall be the same as the strike 

price intervals for the Short Term 

Option.18 Specifically, the Exchange 

may open for trading Short Term Option 

Series at strike price intervals of (i) 

$0.50 or greater where the strike price 

is less than $100, and $1 or greater 

where the strike price is between $100 

and $150 for all option classes that 

participate in the Short Term Options 

Series Program; (ii) $0.50 for option 

classes that trade in one dollar 


ddrumheller on DSK120RN23PROD with NOTICES1
95304 Federal Register / Vol. 89, No. 231 / Monday, December 2, 2024 / Notices 

19 Id. 20See Exchange Rule 404, Interpretation and 

Policy .01. 21See Exchange Rule 404, Interpretation and 

Policy .04. 22See Exchange Rule 404(f). 23See Exchange Rule 510. 

24The surveillance program includes real-time 

patterns for price and volume movements and posttrade surveillance patterns (e.g., spoofing, marking 

the close, pinging, phishing). 

25Section 19(g)(1) of the Act, among other things, 

requires every SRO registered as a national 

securities exchange or national securities 

association to comply with the Act, the rules and 

regulations thereunder, and the SRO’s own rules, 

and, absent reasonable justification or excuse, 

enforce compliance by its members and persons 

associated with its members. See 15 U.S.C. 

78q(d)(1) and 17 CFR 240.17d–2. Section 17(d)(1) 

of the Act allows the Commission to relieve an SRO 

of certain responsibilities with respect to members 

of the SRO who are also members of another SRO 

(‘‘common members’’). Specifically, Section 

17(d)(1) allows the Commission to relieve an SRO 

of its responsibilities to: (i) receive regulatory 

reports from such members; (ii) examine such 

members for compliance with the Act and the rules 

and regulations thereunder, and the rules of the 

SRO; or (iii) carry out other specified regulatory 

responsibilities with respect to such members. 

26See Bitcoin ETP Order, 89 FR at 3010–11. 

27See Bitcoin ETP Order, 89 FR at 3010–11. 

28See Securities Exchange Act Release Nos. 

99290 (January 8, 2024), 89 FR 2338, 2343, 2347– 

2348 (January 12, 2024) (SR–CboeBZX–2023–044) 

Notice of Filing of Amendment No. 3 to a Proposed 

Rule Change to List and Trade Shares of the Fidelity 

Wise Origin Bitcoin Fund Under BZX Rule 

14.11(e)(4), Commodity-Based Trust Shares); and 

99288 (January 8, 2024), 89 FR 2387, 2392, 2399– 

2400 (January 12, 2024) (SR–CboeBZX 2023–028) 

(Notice of Filing of Amendment No. 5 to a Proposed 

Rule Change To List and Trade Shares of the ARK 

21Shares Bitcoin ETF Under BZX Rule 14.11(e)(4), 

Commodity-Based Trust Shares). See also Securities 

increments and are in the Short Term 

Option Series Program; or (iii) $2.50 or 

greater where the strike price is above 

$150.19 Additionally, the Exchange may 

list series of options pursuant to the $1 

Strike Price Interval Program,20 the 

$0.50 Strike Program,21 and the $2.50 

Strike Price Program.22 Pursuant to 

Exchange Rule 510, where the price of 

a series of options for a Bitcoin Fund is 

less than $3.00, the minimum increment 

will be $0.05, and where the price is 

$3.00 or higher, the minimum 

increment will be $0.10 23 consistent 

with the minimum increments for 

options on other ETFs listed on the 

Exchange. Any and all new series of a 

Bitcoin Fund options that the Exchange 

lists will be consistent and comply with 

the expirations, strike prices, and 

minimum increments set forth in Rules 

404 and 510, as applicable. 

Bitcoin Fund options will trade in the 

same manner as any other ETF options 

on the Exchange. The Exchange Rules 

that currently apply to the listing and 

trading of all ETFs options on the 

Exchange, including, for example, 

Exchange Rules that govern listing 

criteria, expiration and exercise prices, 

minimum increments, position and 

exercise limits, margin requirements, 

customer accounts and trading halt 

procedures will apply to the listing and 

trading of Bitcoin Funds options on the 

Exchange in the same manner as they 

apply to other options on all other ETFs 

that are listed and traded on the 

Exchange, including the precious-metal 

backed commodity ETFs already 

deemed appropriate for options trading 

on the Exchange pursuant to current 

Exchange Rule 402(i)(4). 

Position and exercise limits for 

options on ETFs, including Bitcoin 

Fund options, are determined pursuant 

to the Exchange’s affiliate MIAX 

Options Rules 307 and 309, 

respectively. 

Position and exercise limits for ETF 

options vary according to the number of 

outstanding shares and the trading 

volumes of the underlying ETF over the 

past six months, where the largest in 

capitalization and the most frequently 

traded ETFs have an option position 

and exercise limit of 250,000 contracts 

(with adjustments for splits, recapitalizations, etc.) on the same side of 

the market; and smaller capitalization 

ETFs have position and exercise limits 

of 200,000, 75,000, 50,000 or 25,000 

contracts (with adjustments for splits, 

re-capitalizations, etc.) on the same side 

of the market. The Exchange further 

notes that the Exchange’s affiliate MIAX 

Options Rule 1502, which governs 

margin requirements applicable to 

trading on the Exchange, including 

options on ETFs, will also apply to the 

trading of the Trust options. 

Notwithstanding the position limits in 

the Exchange’s affiliate MIAX Options 

Rule 307(d) and exercise limits in the 

Exchange’s affiliate MIAX Options Rule 

309, the Exchange proposes the position 

and exercise limits for the options on 

the Trust to be 25,000 contracts on the 

same side pursuant to proposed 

Supplementary Material .01 to the 

Exchange’s affiliate MIAX Options Rule 

307 and proposed Supplementary 

Material .01 to the Exchange’s affiliate 

MIAX Options Rule 309. 

The Exchange represents that the 

same surveillance procedures applicable 

to all other options on other ETFs 

currently listed and traded on the 

Exchange will apply to Bitcoin Fund 

options. Also the Exchange represents 

that it has the necessary systems 

capacity to support the new option 

series. The Exchange believes that its 

existing surveillance and reporting 

safeguards are designed to deter and 

detect possible manipulative behavior 

which might potentially arise from 

listing and trading options on ETFs, 

including the proposed Bitcoin Funds. 

Today, the Exchange has an adequate 

surveillance program in place for 

options. The Exchange intends to apply 

those same program procedures to 

Bitcoin Fund options that it applies to 

the Exchange’s other options 

products.24 The Exchange’s staff will 

have access to the surveillance programs 

conducted by its affiliate exchanges, 

MIAX Options and MIAX Pearl with 

respect to trading in the shares of the 

underlying Bitcoin Funds when 

conducting surveillances for market 

abuse or manipulation in the options on 

the Bitcoin Funds. Additionally, the 

Exchange is a member of the 

Intermarket Surveillance Group (‘‘ISG’’) 

under the Intermarket Surveillance 

Group Agreement. ISG members work 

together to coordinate surveillance and 

investigative information sharing in the 

stock, options, and futures markets. In 

addition to obtaining surveillance data 

from MIAX Options and MIAX 

Sapphire, the Exchange will be able to 

obtain information regarding trading in 

the shares of the underlying Bitcoin 

Funds from Cboe and other markets 

through ISG. In addition, the Exchange 

has a Regulatory Services Agreement 

with the Financial Industry Regulatory 

Authority (‘‘FINRA’’). Pursuant to a 

multi-party 17d–2 joint plan, all options 

exchanges allocate regulatory 

responsibilities to FINRA to conduct 

certain options-related market 

surveillance that are common to rules of 

all options exchanges.25

The underlying shares of spot bitcoin 

exchange-traded products (‘‘ETPs’’), 

including the Bitcoin Funds, are also 

subject to safeguards related to 

addressing market abuse and 

manipulation. As the Commission 

stated in Bitcoin ETP Order: 

Each Exchange has a comprehensive 

surveillance-sharing agreement with the CME 

via their common membership in the 

Intermarket Surveillance Group. This 

facilitates the sharing of information that is 

available to the CME through its surveillance 

of its markets, including its surveillance of 

the CME bitcoin futures market.26

The Exchange states that, given the 

consistently high correlation between the 

CME bitcoin futures market and the spot 

bitcoin market, as confirmed by the 

Commission through robust correlation 

analysis, the Commission was able to 

conclude that such surveillance sharing 

agreements could reasonably be ‘‘expected to 

assist in surveilling for fraudulent and 

manipulative acts and practices in the 

specific context of the [Bitcoin ETPs].’’ 27

In light of surveillance measures 

related to both options and futures as 

well as the underlying Bitcoin Funds,28


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 231 / Monday, December 2, 2024 / Notices 95305 

Exchange Act Release No. 99306 (Jan. 10, 2024), 89 

FR 3008 (Jan. 17, 2024) (order approving File Nos. 

SR–NYSEARCA–2021–90; SR–NYSEARCA–2023– 

44; SR–NYSEARCA–2023–58; SR–NASDAQ–2023– 

016; SR–NASDAQ–2023–019; SR–CboeBZX–2023– 

028; SR–CboeBZX–2023–038; SR–CboeBZX–2023– 

040; SR–CboeBZX–2023–042; SR–CboeBZX–2023– 

044; SR–CboeBZX–2023–072) (‘‘Bitcoin ETP 

Order’’). 

29The Exchange understands from customers that 

investors have historically transacted in options on 

ETFs in the OTC options market if such options 

were not available for trading in a listed 

environment. 

30 15 U.S.C. 78f(b). 

31 15 U.S.C. 78f(b)(5). 

32 Id. 33See Exchange Rule 402(i)(4). 

the Exchange believes that existing 

surveillance procedures are designed to 

deter and detect possible manipulative 

behavior which might potentially arise 

from listing and trading the proposed 

options on the Bitcoin Funds. Further, 

the Exchange represents that it will 

implement any new surveillance 

procedures it deems necessary to 

effectively monitor the trading of 

options on Bitcoin Funds. 

The Exchange has also analyzed its 

capacity and represents that it believes 

the Exchange and Options Price 

Reporting Authority or ‘‘OPRA’’ have 

the necessary systems capacity to 

handle the additional traffic associated 

with the listing of new series that may 

result from the introduction of options 

on Bitcoin Funds up to the number of 

expirations currently permissible under 

the Rules. Because the proposal is 

limited to one class, the Exchange 

believes any additional traffic that may 

be generated from the introduction of 

Bitcoin Funds options will be 

manageable. 

The Exchange believes that offering 

options on Bitcoin Funds will benefit 

investors by providing them with an 

additional, relatively lower cost 

investing tool to gain exposure to the 

price of Bitcoin and hedging vehicle to 

meet their investment needs in 

connection with Bitcoin-related 

products and positions. The Exchange 

expects investors will transact in 

options on Bitcoin ETPs in the 

unregulated over-the-counter (‘‘OTC’’) 

options market (if the Commission 

approves Bitcoin ETPs for exchangetrading),29 but may prefer to trade such 

options in a listed environment to 

receive the benefits of trading listing 

options, including (1) enhanced 

efficiency in initiating and closing out 

position; (2) increased market 

transparency; and (3) heightened contraparty creditworthiness due to the role of 

OCC as issuer and guarantor of all listed 

options. The Exchange believes that 

listing Bitcoin Fund options may cause 

investors to bring this liquidity to the 

Exchange, would increase market 

transparency and enhance the process of 

price discovery conducted on the 

Exchange through increased order flow. 

The ETFs that hold financial 

instruments, money market instruments, 

or precious metal commodities on 

which the Exchange may already list 

and trade options are trusts structured 

in substantially the same manner as 

Bitcoin Funds and essentially offer the 

same objectives and benefits to 

investors, just with respect to different 

assets. The Exchange notes that it has 

not identified any issues with the 

continued listing and trading of any 

ETFs options, including ETFs that hold 

commodities (i.e., precious metals) that 

it currently lists and trades on the 

Exchange. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the Act 

and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.30 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 31 requirements that the rules of 

an exchange be designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in 

securities, to remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. 

Additionally, the Exchange believes the 

proposed rule change is consistent with 

the Section (6)(b)(5) 32 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

In particular, the Exchange believes 

that the proposal to list and trade 

options on the Bitcoin Funds will 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system and, in 

general, protect investors because 

offering options on the Bitcoin Funds 

will provide investors with a greater 

opportunity to realize the benefits of 

utilizing options on an ETF based on a 

Bitcoin Fund, including cost efficiencies 

and increased hedging strategies. The 

Exchange believes that offering Bitcoin 

Funds options will benefit investors by 

providing them with an additional, 

relatively lower-cost risk management 

tool, allowing them to manage, more 

easily, their positions and associated 

risks in their portfolios in connection 

with exposure to the price of Bitcoin 

and with Bitcoin-related products and 

positions. Additionally, the Exchange’s 

offering of Bitcoin Fund options will 

provide investors with the ability to 

transact in such options in a listed 

market environment as opposed to in 

the unregulated OTC option market, 

which would increase market 

transparency and enhance the process of 

price discovery conducted on the 

Exchange through increased order flow 

to the benefit of all investors. The 

Exchange also notes that it already lists 

options on other commodity-based 

ETFs,33 which, as described above, are 

trusts structured in substantially the 

same manner as Bitcoin Funds and 

essentially offer the same objectives and 

benefits to investors, just with respect to 

a different commodity (i.e., Bitcoin 

rather than precious metals) and for 

which the Exchange has not identified 

any issues with the continued listing 

and trading of commodity-backed ETF 

options it currently lists for trading. 

The Exchange also believes the 

proposed rule change will remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, because 

it is consistent with current Exchange 

Rules, previously filed with the 

Commission. Options on Bitcoin Funds 

must satisfy the initial listing standards 

and continued listing standards 

currently in the Exchange Rules, 

applicable to options on all ETFs, 

including ETFs that hold other 

commodities already deemed 

appropriate for options trading on the 

Exchange. Additionally, as 

demonstrated above, each Bitcoin Fund 

is characterized by a substantial number 

of shares that are widely held and 

actively traded. Bitcoin Fund options 

will trade in the same manner as any 

other ETF options—the same Exchange 

Rules that including permissible 

expirations, strike prices, minimum 

increments, position and exercise limits 

(including as proposed in the filing 

submitted by Exchange’s affiliate, MIAX 

Options), and margin requirements, will 

govern the listing and trading of options 

on the Bitcoin Funds. 

The Exchange represents that it has 

the necessary systems capacity to 

support the new Bitcoin Fund options. 

As discussed above, the Exchange 

believes that its existing surveillance 

and reporting safeguards are designed to 

deter and detect possible manipulative 

behavior which might arise from listing 


ddrumheller on DSK120RN23PROD with NOTICES1
95306 Federal Register / Vol. 89, No. 231 / Monday, December 2, 2024 / Notices 

34The surveillance program includes real-time 

patterns for price and volume movements and posttrade surveillance patterns (e.g., spoofing, marking 

the close, pinging, phishing). 

35Section 19(g)(1) of the Act, among other things, 

requires every SRO registered as a national 

securities exchange or national securities 

association to comply with the Act, the rules and 

regulations thereunder, and the SRO’s own rules, 

and, absent reasonable justification or excuse, 

enforce compliance by its members and persons 

associated with its members. See 15 U.S.C. 

78q(d)(1) and 17 CFR 240.17d–2. Section 17(d)(1) 

of the Act allows the Commission to relieve an SRO 

of certain responsibilities with respect to members 

of the SRO who are also members of another SRO 

(‘‘common members’’). Specifically, Section 

17(d)(1) allows the Commission to relieve an SRO 

of its responsibilities to: (i) receive regulatory 

reports from such members; (ii) examine such 

members for compliance with the Act and the rules 

and regulations thereunder, and the rules of the 

SRO; or (iii) carry out other specified regulatory 

responsibilities with respect to such members. 

36See Bitcoin ETP Order, 89 FR at 3010–11. 

37See Bitcoin ETP Order, 89 FR at 3010–11. 

38See Securities Exchange Act Release No. 99295 

(January 8, 2024), 89 FR 2321, 2334–35 (January 12, 

2024) (SR–NASDAQ–2023–016) (Notice of Filing of 

Amendment No. 1 to a Proposed Rule Change To 

List and Trade Shares of the iShares Bitcoin Trust 

Under Nasdaq Rule 5711(d)). 

39See Securities Exchange Act Release No. 57897 

(May 30, 2008), 73 FR 32061 (June 5, 2008) (SR– 

Amex–2008–15; SR–CBOE–2005–11; SR–ISE–2008– 

12; SR–NYSEArca–2008–52; and SRPhlx–2008–17) 

(Order Granting Approval of a Proposed Rule 

Change, as Modified, and Notice of Filing and 

Order Granting Accelerated Approval of Proposed 

Rule Changes, as Modified, Relating to Listing and 

Trading Options on the SPDR Gold Trust). 

40See Securities Exchange Act Release No. 59055 

(December 4, 2008), 73 FR 75148 (December 10, 

2008) (SR–Amex–2008–68; SR–BSE–2008–51; SR– 

CBOE–2008–72; SR–ISE–2008–58; SRNYSEArca– 

2008–66; and SR–Phlx–2008–58) (Notice of Filing 

and Order Granting Accelerated Approval of 

Proposed Rule Changes Relating to the Listing and 

Trading Options on Shares of the iShares COMEX 

Gold Trust and the iShares Silver Trust). 

41 Id. 

42See Securities Exchange Act Release No. 61483 

(February 3, 2010), 75 FR 6753 (February 10, 2010) 

(SR–CBOE–2010–007; SR–ISE–2009–106; SR– 

NYSEAmex–2009–86; and SR–NYSEArca–2009– 

110) (Order Granting Approval of Proposed Rule 

Changes and Notice of Filing and Order Granting 

Accelerated Approval of a Proposed Rule Change 

Relating to Listing and Trading Options on the 

ETFS Gold Trust and the ETFS Silver Trust). 

43 Id. 

44See supra note 5. 

45See Exchange Rule 402(i)(4). 

and trading ETF options, including 

Bitcoin Fund options. 

Today, the Exchange has an adequate 

surveillance program in place for 

options. The Exchange intends to apply 

those same program procedures to 

options on the Bitcoin Fund that it 

applies to the Exchange’s other options 

products.34 The Exchange’s staff will 

have access to the surveillance programs 

conducted by its affiliate exchanges, 

MIAX Options and MIAX Sapphire with 

respect to the underlying Bitcoin Funds 

when conducting surveillances for 

market abuse or manipulation in the 

options on the Bitcoin Funds. The 

Exchange will review activity in the 

underlying Bitcoin Fund when 

conducting surveillances for market 

abuse or manipulation in the options on 

the Bitcoin Funds. Additionally, the 

Exchange is a member of the ISG under 

the Intermarket Surveillance Group 

Agreement. ISG members work together 

to coordinate surveillance and 

investigative information sharing in the 

stock, options, and futures markets. ISG 

members work together to coordinate 

surveillance and investigative 

information sharing in the stock, 

options, and futures markets. In 

addition to obtaining surveillance data 

from MIAX Options and MIAX 

Sapphire, the Exchange will be able to 

obtain information from Cboe and other 

markets through ISG. In addition, the 

Exchange has a Regulatory Services 

Agreement with FINRA. Pursuant to a 

multi-party 17d–2 joint plan, all options 

exchanges allocate regulatory 

responsibilities to FINRA to conduct 

certain options-related market 

surveillance that are common to rules of 

all options exchanges.35

The underlying shares of spot bitcoin 

ETPs, including the Bitcoin Funds, are 

also subject to safeguards related to 

addressing market abuse and 

manipulation. As the Commission 

stated in Bitcoin ETP Order: 

Each Exchange has a comprehensive 

surveillance-sharing agreement with the 

CME via their common membership in 

the Intermarket Surveillance Group. 

This facilitates the sharing of 

information that is available to the CME 

through its surveillance of its markets, 

including its surveillance of the CME 

bitcoin futures market.36

The Exchange states that, given the 

consistently high correlation between 

the CME bitcoin futures market and the 

spot bitcoin market, as confirmed by the 

Commission through robust correlation 

analysis, the Commission was able to 

conclude that such surveillance sharing 

agreements could reasonably be 

‘‘expected to assist in surveilling for 

fraudulent and manipulative acts and 

practices in the specific context of the 

[Bitcoin ETPs].’’ 37

In light of surveillance measures 

related to both options and futures as 

well as the underlying Bitcoin Funds,38

the Exchange believes that existing 

surveillance procedures are designed to 

deter and detect possible manipulative 

behavior which might potentially arise 

from listing and trading the proposed 

options on the Bitcoin Funds. Further, 

the Exchange represents that it will 

implement any new surveillance 

procedures it deems necessary to 

effectively monitor the trading of 

options on the Bitcoin Funds. 

Finally, the Commission has 

previously approved the listing and 

trading of options on other commodity 

ETFs structured as a trust, such as 

SPDR® Gold Trust,39 the iShares 

COMEX Gold Trust 40 the iShares Silver 

Trust,41 the ETFS Gold Trust,42 and the 

ETFS Silver Trust.43

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. In this regard 

and as indicated above, the Exchange 

notes that the rule change is being 

proposed as a competitive response to 

filings submitted by Cboe.44

The Exchange does not believe that 

the proposed rule change will impose 

any burden on intramarket competition 

that is not necessary or appropriate in 

furtherance of the purposes of the Act 

as options on the Bitcoin Funds will be 

equally available to all market 

participants who wish to trade such 

options and will trade generally in the 

same manner as other options. Further, 

options on the Bitcoin Funds will be 

subject to Exchange Rules that currently 

govern the listing and trading of options 

on ETFs, including permissible 

expirations, strike prices, minimum 

increments, position and exercise limits 

(including as proposed in the filing 

submitted by Exchange’s affiliate, MIAX 

Options), and margin requirements. 

Also, and as stated above, the Exchange 

already lists options on other 

commodity ETFs structured as a trust.45

Further, the Bitcoin Funds would need 

to satisfy the maintenance listing 

standards set forth in the Exchange 

Rules in the same manner as any other 

ETF for the Exchange to continue listing 

options on them. 

The Exchange does not believe that 

the proposal to list to list and trade 

options on the Trust will impose any 

burden on intermarket competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

To the extent that the advent of Bitcoin 

Fund options trading on the Exchange 

may make the Exchange a more 

attractive marketplace to market 

participants at other exchanges, such 

market participants are free to elect to 

become market participants on the 

Exchange. Additionally, other options 

exchanges are free to amend their listing 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 231 / Monday, December 2, 2024 / Notices 95307 

46 15 U.S.C. 78s(b)(3)(A)(iii). 

47 17 CFR 240.19b–4(f)(6). 

48 15 U.S.C. 78s(b)(3)(A)(iii). 

49 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

give the Commission written notice of its intent to 

file the proposed rule change, along with a brief 

description and text of the proposed rule change, 

at least five business days prior to the date of filing 

of the proposed rule change, or such shorter time 

as designated by the Commission. The Commission 

waives this requirement. 

50 17 CFR 240.19b–4(f)(6). 

51 17 CFR 240.19b–4(f)(6)(iii). 

52See Securities Exchange Act Release No. 

101387 (October 18, 2024), 89 FR 84948 (October 

24, 2024) (SR–Cboe–2024–035) (Notice of Filing of 

Amendment Nos. 2 and 3 and Order Granting 

Accelerated Approval of a Proposed Rule Change, 

as Modified by Amendment Nos. 2 and 3, To Permit 

the Listing and Trading of Options on Bitcoin 

Exchange-Traded Funds). 

53For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

rules, as applicable, to permit them to 

list and trade options on the Bitcoin 

Funds. The Exchange notes that listing 

and trading Bitcoin Fund options on the 

Exchange will subject such options to 

transparent exchange-based rules as 

well as price discovery and liquidity, as 

opposed to alternatively trading such 

options in the OTC market. The 

Exchange believes that the proposed 

rule change may relieve any burden on, 

or otherwise promote, competition as it 

is designed to increase competition for 

order flow on the Exchange in a manner 

that is beneficial to investors by 

providing them with a lower-cost option 

to hedge their investment portfolios. 

The Exchange notes that it operates in 

a highly competitive market in which 

market participants can readily direct 

order flow to competing venues that 

offer similar products. Ultimately, the 

Exchange believes that offering Bitcoin 

Fund options for trading on the 

Exchange will promote competition by 

providing investors with an additional, 

relatively low-cost means to hedge their 

portfolios and meet their investment 

needs in connection with Bitcoin prices 

and Bitcoin-related products and 

positions on a listed options exchange. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 46 and Rule 

19b–4(f)(6) thereunder.47 Because the 

foregoing proposed rule change does 

not: (i) significantly affect the protection 

of investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

for 30 days from the date on which it 

was filed, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A)(iii) of the Act 48 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.49

A proposed rule change filed under 

Rule 19b–4(f)(6) 50 under the Act does 

not normally become operative prior to 

30 days after the date of the filing. 

However, pursuant to Rule 19b– 

4(f)(6)(iii),51 the Commission may 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange has requested that the 

Commission waive the 30-day operative 

delay so that the proposal may become 

operative immediately upon filing. The 

Commission previously approved the 

listing of options on the Fidelity Fund 

and the ARK 21 Fund.52 The Exchange 

has provided information regarding the 

underlying Bitcoin Funds, including, 

among other things, information 

regarding trading volume, the number of 

beneficial holders, and the market 

capitalization of the Bitcoin Funds. The 

proposal also establishes position and 

exercise limits for options on the 

Bitcoin Funds and provides information 

regarding the surveillance procedures 

that will apply to Bitcoin Fund options. 

The Commission believes that waiver of 

the operative delay could benefit 

investors by providing an additional 

venue for trading Bitcoin Fund options. 

Therefore, the Commission believes that 

waiver of the 30-day operative delay is 

consistent with the protection of 

investors and the public interest. 

Accordingly, the Commission hereby 

waives the 30-day operative delay and 

designates the proposed rule change as 

operative upon filing.53

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

SAPPHIRE–2024–38 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to file 

number SR–SAPPHIRE–2024–38. This 

file number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (https://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–SAPPHIRE–2024–38 and should be 

submitted on or before December 23, 

2024. 


ddrumheller on DSK120RN23PROD with NOTICES1
95308 Federal Register / Vol. 89, No. 231 / Monday, December 2, 2024 / Notices 

54 17 CFR 200.30–3(a)(12), (59). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 101387 

(October 18, 2024), 89 FR 84948 (October 24, 2024) 

(SR–Cboe–2024–035) (Notice of Filing of 

Amendment Nos. 2 and 3 and Order Granting 

Accelerated Approval of a Proposed Rule Change, 

as Modified by Amendment Nos. 2 and 3, To Permit 

the Listing and Trading of Options on Bitcoin 

Exchange-Traded Funds) (‘‘Cboe Approval Order’’). 

4See Securities Exchange Act Release No. 101386 

(October 18, 2024), 89 FR 84960 (October 24, 2024) 

(SR–NYSEAMER–2024–49) (Notice of Filing of 

Amendment No. 3 and Order Granting Accelerated 

Approval of a Proposed Rule Change, as Modified 

by Amendment No. 3, To Permit the Listing and 

Trading of Options on Bitcoin Exchange-Traded 

Funds) (‘‘NYSE American Approval Order’’). 

5See SR–ISE–2024–54 

6 15 U.S.C. 78f(b) 

7 15 U.S.C. 78f(b)(5). 

8The Exchange believes that other exchanges will 

adopt position and exercise limits of 25,000 

contracts for options on each of the Bitcoin Trusts. 

All Nasdaq affiliated markets have filed to adopt a 

25,000 contract position and exercise limit for the 

Bitcoin Trusts. 

9All Nasdaq affiliated markets are filing to adopt 

a 25,000 contract position and exercise limit for 

options on the Bitcoin Trusts. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.54

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–28102 Filed 11–29–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101736; File No. SR– 

NASDAQ–2024–073] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend 

Options 9, Section 13, Position Limits, 

and Options 9, Section 15, Exercise 

Limits, Regarding Options on the 

Fidelity Wise Origin Bitcoin Fund, the 

ARK21Shares Bitcoin ETF, the 

Grayscale Bitcoin Trust (BTC), the 

Grayscale Bitcoin Mini Trust BTC, and 

the Bitwise Bitcoin ETF 

November 25, 2024. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on November 

21, 2024, The Nasdaq Stock Market LLC 

(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend The 

Nasdaq Options Market LLC (‘‘NOM’’) 

Options 9, Section 13, Position Limits, 

and Section 15, Exercise Limits. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/nasdaq/rules, at the principal 

office of the Exchange, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

Options 9, Section 13, Position Limits, 

and Options 9, Section 15, Exercise 

Limits, to limit the position limits for 

options on the Fidelity Wise Origin 

Bitcoin Fund, the ARK21Shares Bitcoin 

ETF, the Grayscale Bitcoin Trust (BTC), 

the Grayscale Bitcoin Mini Trust BTC, 

and the Bitwise Bitcoin ETF 

(collectively ‘‘Bitcoin Trusts’’). 

Recently, Cboe Exchange, Inc. 

(‘‘Cboe’’) received approvals to list 

options on the Fidelity Wise Origin 

Bitcoin Fund, and the ARK21Shares 

Bitcoin ETF.3 Also, recently, NYSE 

American LLC (‘‘NYSE American’’) 

received approvals to list options on the 

Fidelity Wise Origin Bitcoin Fund, the 

ARK21Shares Bitcoin ETF, the 

Grayscale Bitcoin Trust (BTC), the 

Grayscale Bitcoin Mini Trust BTC, and 

the Bitwise Bitcoin ETF.4 Nasdaq ISE, 

LLC (‘‘ISE’’) filed a rule change to also 

list and trade options on the Bitcoin 

Trusts.5 NOM’s Options 4 Rules were 

amended by the ISE rule change as 

those Rules are incorporated by 

reference to ISE’s Options 4 Rules, so 

NOM has the ability to list the options 

on the Bitcoin Trusts. The Cboe 

Approval Order and the NYSE 

American Approval Order stated that 

the position and exercise limits for each 

of the Bitcoin Trusts shall be 25,000 

contracts. At this time, the Exchange 

proposes to amend NOM Option 9, 

Section 13 and Options 9, Section 15 to 

similarly note that options on the 

Fidelity Wise Origin Bitcoin Fund, the 

ARK21Shares Bitcoin ETF, the 

Grayscale Bitcoin Trust (BTC), the 

Grayscale Bitcoin Mini Trust BTC, and 

the Bitwise Bitcoin ETF shall have 

position and exercise limits of 25,000 

contracts to mirror the Cboe Approval 

Order and the NYSE American 

Approval Order, respectively. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,6 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,7

in particular, in that it is designed to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general to protect 

investors and the public interest. 

The Exchange’s proposal to amend 

Options 9, Section 13, Position Limits, 

and Options 9, Section 15, Exercise 

Limits, to provide that the position and 

exercise limits for options on each of the 

Bitcoin Trusts shall be 25,000 contracts 

is consistent with the Act as it will 

conform NOM’s options position and 

exercise limits for each of the Bitcoin 

Trusts with ISE’s options position and 

exercise limits on these same Bitcoin 

Trusts to align those limits.8

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

Amending Options 9, Sections 13 and 

15 to provide that the position and 

exercise limits for options on each of the 

Bitcoin Trusts shall be 25,000 contracts 

does not impose an undue burden on 

competition as the position and exercise 

limits will apply to all trading for 

options on the Bitcoin Trusts trading on 

the Exchange as well as those trading on 

other exchanges that file a similar 

proposal.9

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 


ddrumheller on DSK120RN23PROD with NOTICES1