The U.S. Securities and Exchange Commission has granted “early approval” for a Bitcoin options exchange-traded fund to list on the New York Stock Exchange and Chicago Options Exchange.
According to an Oct. 18 filing, the SEC gave the NYSE and CBOE the green light to list and trade options on Bitcoin ETFs.
Options give investors the right to buy or sell an asset at a specific price before an agreed date (referred to as a “call” or “put” option). The move is expected to create new opportunities for investors looking to manage risk or take advantage of Bitcoin's price fluctuations.
In the New York Stock Exchange's approval, the regulator said options trading could provide “improved price efficiency” and “reduced volatility” for the underlying Bitcoin ETF, potentially stabilizing the overall market. Ta.
“Allowing the listing of such options would increase the transparency and efficiency of the market for these and related products,” the filing added.
For the NYSE, options trading is available with 11 ETF providers, including:
- Fidelity Wise Origin Bitcoin Fund
- ARK21Shares Bitcoin ETF
- Invesco Galaxy Bitcoin ETF
- Franklin Bitcoin ETF
- VanEck Bitcoin Trust
- WisdomTree Bitcoin Fund
- grayscale bitcoin trust
- Grayscale Bitcoin Mini Trust
- Bitcoin ETF per bit
- BlackRock iShares Bitcoin Trust ETF
- Valkyrie Bitcoin Fund
Meanwhile, the SEC also approved option listings for these funds on the CBOE, with the sole exception of Grayscale's Bitcoin Mini Trust.
The SEC had already approved Nasdaq's application to list and trade options for BlackRock's iShares Bitcoin Trust in early 2024.
Investors see the approval of Bitcoin ETF options as a significant development that could bring additional liquidity to the Bitcoin market. Jeff Park, Head of Alpha Strategy at Bitwise Invest, said the development is “transformative” for the crypto market.
Other market observers noted that Wall Street's involvement could significantly boost the Bitcoin market once trading begins. See below.
Meanwhile, the SEC postponed approval of spot Ethereum ETF options trading, which was originally scheduled to be done by the end of September, and extended the review period until mid-November.
