The US Securities and Exchange Commission (SEC) has given the go-ahead for options trading for all 11 spot Bitcoin ETFs on the New York Stock Exchange and Chicago Board Options Exchange.
This follows the recent approval of BlackRockâs IBIT options on the Nasdaq by the SEC just a few weeks prior.
Bloomberg ETF analyst Eric Balchunas noted that while the SEC was a major hurdle, other regulatory steps remain:
âGood news as SEC was a big hurdle. Weâre hearing good things about the rest of the process, although the exact timeline for listing date is still unclear.â
Balchunas pointed out that the Commodity Futures Trading Commission (CFTC) still gets the final word on approval when commodities like Bitcoin are involved.
This comes as cumulative Bitcoin ETF inflows surged past $21 billion for the first time on October 18, with nearly $1 billion pouring into Bitcoin funds in just two days last week.
This âflowmageddon,â as Balchunas described it, will âattract more liquidity, which will, in turn, attract more big fish.â
The approval of Bitcoin ETF options trading will let traders take on larger Bitcoin positions with less capital through leverage.
This heightened liquidity could also result in bigger price swings and market volatility.
Bitcoin is currently trading near a three-month high of $68,100.
