Options trading on Grayscale, Bitwise, Fidelity and ARK ETFs was authorized.
Almost a month ago, the SEC approved BlackRock ETF options trading.
On the afternoon of this Friday, October 18, the United States Securities and Exchange Commission (SEC) issued two memoranda authorizing the New York Stock Exchange (NYSE) and the Chicago Options Exchange (Cboe) to list and trade options linked to multiple bitcoin (BTC) spot price exchange-traded funds (ETFs).
This decision greatly expands the investment ecosystem around bitcoin products, that have attracted billions of dollars in admissions this year.
According to SEC memos, the NYSE may list and trade options on the Grayscale Bitcoin Trust (GBTC), the Grayscale Bitcoin Mini Trust (BTC), and the Bitwise Bitcoin ETF (BITB). On the other hand, Cboe got approval to quote and trade options on the Fidelity Wise Origin Bitcoin Fund (FBTC) and the ARK 21Shares Bitcoin ETF (ARKB).
The SEC amended exchange rules to allow these trades, believing that options on bitcoin ETFs “would allow for hedging and greater liquidity, better pricing efficiency, and less volatility with respect to the underlying funds.” Furthermore, it is expected that these options “will improve the transparency and efficiency of the markets in these and correlated products.”
Options are financial derivatives that allow investors to buy or sell an underlying asset, in this case bitcoin ETFs, at a predetermined price on or before an agreed upon date. Trading these options is considered a step forward to increase institutional interest in cryptocurrenciespromising greater liquidity and accessibility for investors.
This approval comes almost a month after the SEC gave the green light to options based on BlackRock’s bitcoin ETF, which marked a milestone in the regulation of financial products linked to cryptocurrencies in the United States, as reported by CriptoNoticias.
For investors, this news represents a double advantage. This, as it provides an additional tool for risk management and hedging positions in bitcoin without the need to directly own the digital asset.
The SEC’s authorization to list options on these ETFs not only marks a step forward in the normalization of bitcoin within traditional marketsbut also reinforces the perception that the currency is maturing as a legitimate and regulated asset class.
This article was created using artificial intelligence and edited by a human Editor.