Options on BlackRock's Bitcoin ETF Will Launch Tuesday

Options trading for BlackRock's spot Bitcoin ETF will begin on Tuesday, according to a Nasdaq spokesperson. This marks a significant development in providing leveraged Bitcoin exposure on Wall Street. The Options Clearing Corporation (OCC) updated its website to include options listings for the iShares Bitcoin Trust ETF (IBIT), a $43 billion fund, confirming that these options will be listed on Nasdaq.

The U.S. Securities and Exchange Commission (SEC) approved the launch of options for spot Bitcoin ETFs last month, and the recent update from the OCC cleared the final hurdle for their introduction. Bloomberg ETF analyst Eric Balchunas called it a "wrap," noting that Nasdaq had confirmed plans to list the options as early as Tuesday. Alison Hennessy, Nasdaq’s Head of ETP Listings, expressed excitement about the upcoming listing, anticipating significant investor interest.

The OCC's memo also clarified that the listing of these options is within the SEC's jurisdiction, following confirmation from the Commodities Futures Trading Commission (CFTC) that it would not regulate these products. This decision has paved the way for the OCC to manage the clearance, settlement, and risk aspects of spot Bitcoin ETF options.

Bitcoin’s surge to over $93,000 this year has fueled the popularity of spot Bitcoin ETFs, with BlackRock’s IBIT leading the pack, attracting $29 billion in inflows. Analysts view the introduction of options as a major development, potentially enhancing liquidity and offering new opportunities for traders, particularly during periods of high market volatility.