The U.S. Securities and Exchange Commission has permitted “accelerated approval” for the listing of Bitcoin options exchange-traded funds on the New York Stock Exchange and the Chicago Board Options Exchange.
As per the filings dated Oct. 18, the SEC has authorized both the NYSE and CBOE to list and trade options associated with Bitcoin ETFs.
Options provide investors the right to buy or sell an asset—known as “call” or “put” options—at a predetermined price before a specified date. This initiative is set to create new opportunities for investors looking to hedge risks or take advantage of Bitcoin price changes.
In its approval for the NYSE, the agency noted that options trading could lead to “better price efficiency” and “less volatility” for the Bitcoin ETFs involved, which may stabilize the overall market.
“Allowing the listing of such options would improve the transparency and efficiency of markets for these and related products,” the filing stated.
For the NYSE, options trading will be accessible for 11 ETF providers, including:
- Fidelity Wise Origin Bitcoin Fund
- ARK21Shares Bitcoin ETF
- Invesco Galaxy Bitcoin ETF
- Franklin Bitcoin ETF
- VanEck Bitcoin Trust
- WisdomTree’s Bitcoin Fund
- Grayscale Bitcoin Trust
- Grayscale Bitcoin Mini Trust
- Bitwise Bitcoin ETF
- BlackRock’s iShares Bitcoin Trust ETF
- Valkyrie Bitcoin Fund
Additionally, the SEC has granted approval for options listings for these funds on the CBOE, with the sole exception of Grayscale’s Bitcoin Mini Trust.
Earlier in 2024, the SEC had previously approved Nasdaq’s request to list and trade options for BlackRock’s iShares Bitcoin Trust.
Investors view the approval of options for Bitcoin ETFs as a pivotal moment that could infuse additional liquidity into Bitcoin markets. Jeff Park, Bitwise Invest’s head of alpha strategies, described this development as a “game changer” for the cryptocurrency landscape.
Furthermore, various market analysts observed that Wall Street’s participation could greatly enhance Bitcoin markets once trading commences. See below.
In related news, the SEC has postponed the approval of options trading for spot Ethereum ETFs, which was initially anticipated to conclude by the end of September, extending the review period to mid-November.
