The US Securities and Exchange Commission (SEC) has given the green light for Bitcoin (BTC) options exchange-traded funds (ETFs) to be listed on two major US exchanges.
In separate statements, the regulatory agency announced its approval of bids from the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE) to list options contracts for BTC-based ETFs.
The SEC justified its decision by pointing out that it recently approved a rule change proposal from Nasdaq to list options on the iShares Bitcoin Trust (IBIT), which has yielded positive results.
“The Exchange acknowledges that this filing is in competition with Nasdaq’s recent approval to allow the listing and trading of options on the iShares Bitcoin Trust, a trust that holds Bitcoin. As discussed here, the Exchange believes that, similar to the approved options on IBIT, options on the Bitcoin Funds would provide hedging capabilities and contribute to increased liquidity, improved price efficiency, and reduced volatility with regard to the underlying funds. Additionally, allowing the listing of such options would enhance the transparency and efficiency of markets for these products and related ones.”
In September, Jeff Park, the head of alpha strategies at Bitwise, commented that “things will likely get wild” after the SEC approved Nasdaq’s bid to list BlackRock’s IBIT options.
According to Park, since BTC cannot be diluted by simply creating more, options ETFs will experience an “unbelievably fantastic” market.
“In summary, the Bitcoin ETF options market is the first time the financial world will witness regulated leverage on a perpetually scarce commodity. Things will likely get wild. In such scenarios, regulated markets may close. However, the incredible 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 unbelievably fantastic.”
Stay updated with the latest news and developments by subscribing to receive email alerts directly to your inbox.
Please note that the opinions expressed in The Daily Hodl are not investment advice. Investors should conduct their own research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets. Please be aware that any transfers and trades you make are at your own risk, and you are responsible for any losses you may incur. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, and it is not an investment advisor. Please also note that The Daily Hodl participates in affiliate marketing.
Image: [insert generated image here]
