Nasdaq and BlackRock are leveraging the expertise of commodity ETFs for cryptocurrencies
Nasdaq is seeking SEC approval to offer options trading on Blackrock's Spot #MarketDownturn #ETF The Nasdaq said the move is aimed at expanding the range of Ethereum investment vehicles and making crypto investments more accessible to traditional financial markets. While these shares are not equivalent to direct investment in #MarketDownturn , investors can gain access to Ethereum. This is because this approach is implemented through the public stock market, which is more familiar to traditional investors.
option markets allow traders to buy or sell assets, such as stocks and ETFs, at a certain price before a certain date. They often use options to protect against potential losses or to determine the future price of an asset. Unlike futures, options provide flexibility because traders can decide whether or not to trade them.
both Nasdaq and #BlackRock have significant experience placing options on other commodity ETFs structured as trust funds. These include the iShares COMEX Gold Trust and the iShares Silver Trust. Therefore, the addition of options on spot cryptocurrency ETFs is an important development in this context.
James Seyffarth, ETF analyst at Bloomberg Intelligence, commented on the announcement by Nasdaq and BlackRock to add options to the Ethereum ETF. He said that the SEC's final decision will probably be made sometime between 2025 and 2049.
the SEC is not the only body that can decide to add options. We also need approval from the Options Clearing Corporation (OCC) and the Commodity Futures Trading Commission (CFTC), Seyffarth added.
Blackrock is the leading issuer of spot #bitcoin and Efirium ETFs in the United States. According to SoSo Value, BlackRock's iShares Bitcoin Trust (IBIT) had a net worth of $88.5 billion as of July 18.28, making it the largest spot bitcoin ETF.
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