The world of Bitcoin trading just took a major step forward!
On September 20, the U.S. Securities and Exchange Commission (SEC) approved Nasdaq’s request to list and trade options for BlackRock’s spot Bitcoin ETF.
Under the ticker symbol IBIT, this ETF will be traded just like any other ETF options on Nasdaq, following the same set of rules.
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In a nod to the growing demand for crypto investment vehicles, these options on the iShares Bitcoin Trust will be physically settled with an American-style exercise, meaning investors can trade freely at any point before the expiry. Nasdaq’s listing standards require IBIT options to be tied to a security that’s widely traded, ensuring ample liquidity.
More Approvals on the Horizon?
While Nasdaq has received SEC approval, it’s still unclear if other U.S. exchanges will get the green light to offer options for their spot Bitcoin ETFs.
ETF analyst Eric Balchunas hinted that more approvals could be around the corner, but we’ll have to wait for additional regulatory bodies like the Office of the Comptroller of the Currency (OCC) and the Commodity Futures Trading Commission (CFTC) to weigh in before things can go live.
This SEC nod is a significant win for crypto, with trading volumes for IBIT already skyrocketing. On August 5, the ETF saw more than $875 million in trades, contributing to a whopping $1.3 billion across all spot Bitcoin ETFs. Nasdaq is already pushing for options trading on spot Ethereum ETFs, signaling a possible wave of future crypto options.
Bitcoin ETFs are gaining serious momentum—stay tuned!
