Nasdaq Set to Launch Options Trading for BlackRock’s Bitcoin ETF After SEC Approval
YEREVAN (CoinChapter.com)—The U.S. Securities and Exchange Commission (SEC) has approved Nasdaq’s request to list and trade options for BlackRock’s spot Bitcoin ETF. The decision opens new opportunities for traders as it allows options trading under the IBIT ticker, offering a new layer of engagement with Bitcoin-related assets.
SEC Accelerated Approval Document – Nasdaq ISE Bitcoin ETF Options. Source: SEC Release No. 34-101128 SEC Greenlights BlackRock’s Bitcoin ETF Options
On September 20, the SEC approved Nasdaq’s request to list and trade options on BlackRock’s iShares Bitcoin Trust ETF, which will trade under the ticker symbol IBIT. These options will settle physically with American-style exercise, allowing them to be exercised at any point before expiration. This approval adheres to standard listing requirements, ensuring that the ETF’s underlying assets comply with specific liquidity and trading standards.
By granting this approval, the SEC enables Nasdaq to broaden its array of trading instruments for investors. Consequently, these options will adhere to the same regulations as other ETF options, aligning them with the exchange’s listing and trading standards. This advancement, therefore, represents a significant milestone for Bitcoin within regulated markets.
Details of the SEC’s Approval for BlackRock’s Bitcoin ETF Options
Nasdaq has received approval to offer options on BlackRock’s iShares Bitcoin Trust ETF, adhering to strict regulatory standards. The SEC has stated that these ETF options will be physically settled and must comply with both initial and ongoing listing standards. This approval is likely to boost interest in Bitcoin ETFs, offering investors more versatile ways to engage with Bitcoin assets.
The SEC’s notice also specified that the ETF must satisfy certain liquidity requirements. It must have a significant number of broadly held and actively traded shares, ensuring the options’ stability and security for investors.
Additionally, the Office of the Comptroller of the Currency (OCC) and the Commodity Futures Trading Commission (CFTC) must also approve these options before trading can commence. These approvals are crucial for ensuring that the options adhere to comprehensive regulatory standards.
Eric Balchunas’s Insight on ETF Approval Process. Source: X Increasing Bitcoin ETF Trading Volume
The momentum for Bitcoin-related investment vehicles continues to build as BlackRock’s ETF options progress through the approval process. On Aug. 5, the trading volume for IBIT surged, exceeding $875 million and contributing to more than $1.3 billion across all spot Bitcoin investment vehicles. This increase in trading underscores a rising interest in Bitcoin ETFs and suggests potential market growth.
Although the SEC has greenlit BlackRock’s Bitcoin ETF options, whether other exchanges will follow suit remains to be seen. Industry experts are optimistic; this initial approval may encourage other exchanges to seek similar permissions. This could spark more competition and provide investors with more choices.
Eric Balchunas Tweet on Bitcoin ETF Options. Source: X
Following the SEC’s approval for Bitcoin ETF options, Nasdaq has also filed to trade options on Ethereum ETFs. This move suggests that BlackRock’s Bitcoin ETF could mark the beginning of more extensive cryptocurrency options trading in regulated markets.
As interest in cryptocurrency investment vehicles grows, we may see more developments in the ETF sector. These advances would provide investors with more options to diversify their portfolios.
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