Bloomberg analyst Eric Balchunas commented on this new historic moment for the crypto market.
On Friday, the U.S. Securities and Exchange Commission (SEC) granted early approval to 11 exchange-traded funds (ETFs) to list and trade options tied to the spot price of Bitcoin on the New York Stock Exchange (NYSE). gave.
According to Balciunas, the SEC recently approved the same for Nasdaq, so this news is not a big surprise, even though it is positive news for cryptocurrencies in general.
However, Balciunas said the new options still require CFTC approval, so actual listing will take longer.
Approved funds include:
- Fidelity Wise Origin Bitcoin Fund (FBTC.Z)
- ARK21Shares Bitcoin ETF
- Invesco Galaxy Bitcoin ETF (BTCO.Z)
- Grayscale Bitcoin Trust (GBTC.P)
- iShares Bitcoin Trust ETF (IBIT.O)
This is an important step forward for institutional investors, as Bitcoin options provide a flexible and efficient tool to hedge and expand their exposure to Bitcoin.
These options require less capital than trading physical assets and offer investors a way to hedge against speculation and risks associated with Bitcoin price fluctuations in a regulated market.
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While this development is positive for the crypto market, these options still require approval from the Commodity Futures Trading Commission (CFTC) to be officially listed.
Previously, the SEC approved BlackRock's iShares Bitcoin Trust option on the Nasdaq, so this New York Stock Exchange approval is a broader move to increase institutional access to Bitcoin through regulated financial products. This is a continuation of the trend.
On Friday, BTC reached a local high of $69,000 and crossed the key resistance level of $68,000.
Bitcoin ended the third quarter with a modest 1.00% gain, recovering after falling below $50,000 in August. Heading into the fourth quarter, market sentiment is bullish, supported by historical data that shows the average fourth-quarter return since 2014 is 49.9%.
This optimism is reinforced by changes in market dynamics following the Federal Reserve's 50 basis point interest rate cut.
The reduction led to increased market activity, with total Bitcoin open interest increasing 6% to nearly $27 billion. Bitcoin's price soared above $62,000 reflecting the strong bullish reaction, and altcoins followed suit, outperforming volatile US stocks.
