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SEC Approves Bitcoin Options ETFs for Listing on New York Stock Exchange and CBOE

adminOct. 20, 202404 mins

The U.S. Securities and Exchange Commission (SEC) is greenlighting Bitcoin (
BTC
) options exchange-traded funds (ETFs) for two major US exchanges.
In separate statements, the regulatory agency says it’s
approving
the
bids
from 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, the options ETFs were given the nod because it recently approved 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 competitive filing as the Commission recently approved a rule proposal by Nasdaq to allow the listing and trading of options on iShares Bitcoin Trust, which is a trust that holds Bitcoin.
As discussed herein, the Exchange believes, like the recently-approved options on IBIT, options on the Bitcoin Funds would permit hedging, and allow for more liquidity, better price efficiency, and less volatility with respect to the underlying funds.
Further, permitting the listing of such options would enhance the transparency and efficiency of markets in these and correlated products.”
In September, Bitwise’s head of alpha strategies Jeff Park
said
that “things will likely get wild” after the SEC approved Nasdaq’s bid to list BlackRock’s IBIT options.
According to Park, since BTC can’t be diluted by simply creating more, things will be “unbelievably fantastic” for options ETFs.
“In summary, the Bitcoin ETF options market is the first time the financial world will see regulated leverage on a perpetual commodity that is truly supply-constrained.
Things will likely get wild. In such scenarios, regulated markets may shut down. But the remarkable thing about Bitcoin is there will always be a parallel, decentralized market that can’t 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.”
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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SEC Approves Bitcoin Options ETFs for Listing on New York Stock Exchange and CBOE

adminOct. 20, 202404 mins

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.”

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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.

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