The US Securities and Exchange Commission (SEC) gives the green light for Bitcoin (BTC) options Exchange Traded Funds (ETFs) for two major US exchanges.
In separate statements, the regulator said it did approve the bids of the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE) to list options contracts for BTC-based ETFs.
According to the SEC, options ETFs were given credit for recently approving a rule change proposal from Nasdaq to list options on the iShares Bitcoin Trust (IBIT), which yielded positive results.
“The Exchange notes that this is a competing filing as the Commission recently approved a rule proposal from Nasdaq to authorize the listing and trading of options on iShares Bitcoin Trust, a trust that owns Bitcoin.
As discussed herein, the Exchange believes that options on the Bitcoin Funds, like the recently approved options on IBIT, would enable hedging and allow for greater liquidity, better price efficiency and less volatility with respect to the underlying funds.
Furthermore, allowing the listing of such options would increase the transparency and efficiency of the markets for these and related products.”
In September, Jeff Park, head of alpha strategies at Bitwise, said “things are probably going to get wild” after the SEC approved Nasdaq’s bid to list BlackRock’s IBIT options.
According to Park, things will be “incredibly fantastic” for options ETFs as BTC cannot be diluted by simply creating more.
“In summary, the Bitcoin ETF options market is the first time the financial world has seen regulated leverage on a perpetual commodity whose supply is truly limited.
It’s probably going to be wild. In such scenarios, regulated markets may be closed. But the remarkable thing about Bitcoin is that there will always be a parallel, decentralized market that cannot be shut down, unlike GME (GameStop), which, as you can imagine, will add even more fuel to the fire. It’s going to be incredibly fantastic.”
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