**NYSE Arca Withdraws Proposal for Options on Crypto ETFs**

The New York Stock Exchange's Arca electronic exchange has withdrawn its proposal to allow options trading on commodity-based trusts, including cryptocurrency ETFs. Initially proposed in January, the rule change aimed to permit listing and trading of options on Commodity-Based Trust Shares, such as the Grayscale Bitcoin Trust (GBTC).

This move is part of a broader trend, with other exchanges like Cboe and Nasdaq also seeking SEC approval to list options on Bitcoin and Ethereum ETFs. Currently, investors can trade options on ETFs tracking Bitcoin derivatives but not on those holding actual Bitcoin.

The withdrawal underscores ongoing regulatory challenges and the evolving landscape of crypto ETF options. Allowing such options could significantly impact financial advisors, who use them to manage market risks.