The U.S. Securities and Exchange Commission has approved a rule change that will allow the NASDAQ International Securities Exchange to list and trade options on the BlackRock iShares Bitcoin Trust (IBIT) listed investment trust.
The exchange's decision is a new step in expanding the range of bitcoin-related derivative products, providing investors with new tools to manage the risks associated with the world's largest cryptocurrency.
#BlackRock has been seeking approval for such a listing since at least March this year, after regulators approved several bitcoin-related ETFs in the United States.
The SEC's approval follows several amendments submitted by Nasdaq ISE that are designed to address concerns about market manipulation and excessive risk-taking in the emerging crypto options market.
Nasdaq ISE has filed a proposal with the SEC to list and trade options on trusts managed by BlackRock. The assets of the newly proposed iShares #Ethereum Trust would consist solely of etherium held on Coinbase and cash held at Bank of New York Mellon, the company said in a statement filed Tuesday. The trust will not participate in the Ethereum proof of stake or use its assets to generate additional betting revenue.
This comes after several requests for rule amendments to allow options related to #bitcoin and Ethereum ETFs to be listed in the U. S. faced resistance over concerns about market stability. The amendments set a limit of 25,000 IBIT options positions and contracts.
the SEC document, this is extremely conservative, given the size of the market and the liquidity of the trust.
IBIT options are physically settled and executed U. S. -style, providing a hedge for investors looking to manage bitcoin risk.
BlackRock's BlackRock ETF, which is linked to the bitcoin price, has attracted significant attention from retail and institutional investors since its launch earlier this year, making it one of the most liquid bitcoin-related products in the U. S. market.
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